If you follow the real estate market here in Regina you may have noticed that you haven’t heard the term “Average Home Price” in Regina for quite some time now. If you’re wondering why; the reason for this is because back in 2012 The Association of Regina REALTORS® or ARR chose to start re-laying home price trends information in a more accurate and reliable manner. We started using the MLS® Home Price Index or HPI. While this may not make a lot of sense to the general public, I know myself as a Registrant or REALTOR® this system of relaying this general home pricing information is quite accurate!
Here is the basic information that you need to know:
Why doesn’t the Average Home Price work anymore?
Calculating home prices using averages is just not feasible in this marketplace anymore for a number of reasons but the primary being that there are so many areas of Regina that are mixed use in terms of housing that it skews the data. For instance, if you have an 800K home, a 600K home and a 200K condo in the same general area of each other sell, that 200K condo sale is going to pull down the average sale price considerably. Another example of a transaction that skews average price would be the sale of vacant lots or tear down homes.
What is the MLS® HPI?
The HPI allows us to look for trends in home prices based on four common benchmark home types (single family one storey, two-storey, row house and apartment condo) and a composite of all four – this is done at the neighbourhood and city levels of the Regina marketplace. This provides a market context in terms of price trends over time by home type and location. Combined with the knowledge, skills, and experience of a Real Estate Professional – it’s a great tool to help track price trends and to value homes.
What can the HPI do for me?
The HPI is based on MLS® listing sold data which is a comprehensive and accurate source of real estate information in Canada thus providing a more accurate snapshot of price trends in your neighborhood. In short, it allows you to compare “Apples to Apples” as they say.
Having up to date accurate information will assist you in maximizing your real estate transaction whether you are buying or selling. Having the ability to see price trends over time will also assist in planning ahead for your real estate transaction.
How does the HPI work?
The MLS® HPI can help you gauge changes in housing prices over time, including changes in the overall market home prices, prices in specific home styles in a given area, or a specific home style in the market as a whole.
The MLS® HPI is published at the beginning of every month for the previous month and can be found on the ReginaREALTORS.com website or you can consult with a local REALTOR®.