What is the MLS Home Price Index?
The Canadian Real Estate Association (CREA) explains what the MLS Home Price Index is and how realtors leverage this tool to help clients make informed real estate decisions. Watch the video below for an explanation from CREA and continue reading to learn how I use the MLS HPI to help our clients.
Watch CREA Explain the MLS Home Price Index
The MLS Home Price Index
The MLS Home Price Index (HPI) is one of the best tools for realtors to use when pricing a client’s home. It is a tool used to gauge home price levels and trends in specific neighbourhoods.
Usually when we see average or median prices, they don’t take into account how the features of homes affect the price such as the age or number of bedrooms and bathrooms. That’s why the MLS HPI is a great resource for information. It takes these factors into account, which means we get a better idea of a fair price for your home in your neighbourhood.
Using the MLS Home Price Index as a Realtor
The MLS HPI is updated at the start of every month. It shows the change in home prices and trends for one and two story single family homes, townhouses, row units, and condo/apartment units. This makes it a reliable source I use to stay updated on the most recent changes in real estate.
Being well-informed about neighbourhood statistics is crucial as a realtor. We need to use tools like these to stay knowledgeable about the neighbourhoods we serve.
How the MLS Home Price Index Benefits the Client
As a realtor, it helps me understand changes in price for different property types in specific neighborhoods. Whether my client is buying or selling, I help them make more informed pricing decisions.
The MLS HPI helps validate my pricing recommendations as part of my comparative market analysis. This allows me to provide potential clients with accurate pricing recommendations in my free home evaluations. I help homeowners understand the value of their unique home, backed with real data.
The home price index tool also shows trends for different housing categories in different neighbourhoods. That means I get statistics and trends that are specific to the situation of my clients.
As a realtor, we have exclusive access to the MLS HPI. That’s why working with a local realtor is beneficial. We have access to tools and knowledge that the general public does not. This kind of information helps us stay in the loop and adds to our local expertise. Making informed recommendations for our clients is very important, especially when it comes to big real estate decisions.
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