Have you become numb to numbers? There are articles and posts written every day about real estate. And in every article or post, there are numbers. Sales numbers, price numbers, listing numbers... Unless you are an in-depth analyst, you probably take these numbers in and soon, possibly by the time you read the next article or post, they have leaked out of your memory and you take in new numbers. Although it's important to be very specific about exact product, location, details, etc. when in a buy or sell situation, there is a statistical number developed to help with number overload - the Home Price Index (HPI). You see this number often, also known as 'benchmark price', but not a lot of people truly understand exactly what this is. It's different than average or median and is a good reference point. If you're looking for general trend information only, keep this one in mind.
What is it? Developed using data from the Multiple Listing Service®, the MLS® Home Price Index (or MLS® HPI for short) allows you to see trends in home prices for a specific type of property in a given neighbourhood.
How does it work? The MLS® HPI tracks changes in home prices by comparing price levels at a point in time with price levels in a base (reference) period. The base period value is always 100. So if a specific type of property in a given neighbourhood had a value of $400,000 in 2005 and now has a value of $680,000, the HPI is 70 ($680,000 / $400,000 = 1.70 x 100 - 100 = 70).
Why not just look at average or median prices? The MLS® HPI is based on the value homebuyers assign to various housing attributes, which tend to evolve gradually over time. This means that price changes calculated using the MLS® HPI are less volatile than those derived using common measures like average and median, which can swing dramatically in response to changes with high-end or low-end sales volumes over time. It is often difficult to determine if average or median price fluctuations really reflect changes in buyers’ willingness to pay for certain housing attributes, or just changes in the volume of very expensive or inexpensive home sales from one time period to the next. The MLS® HPI removes that uncertainty.
So, how has the MLS® HPI performed? Roll your mouse over the chart for live data to appear.
REVGV - All property types
REBGV - Detached housing
REBGV - Apartments/Condos
REBGV - Townhouses
For further statistics from the month of October 2014, keep reading... And remember, if you don't see your Area or Sub-Area here, contact me directly for those details - there are simply far too many categories to break down here.
SALES: 3,057 - October 2014.
- 14.9% increase over 2,661 sales in October 2013
- 4.6% increase over 2,922 sales in September 2014
- 16.6% increase over 10-year October average
DETACHED HOME SALES: 1,271 - October 2014
- 19.1% increase over 1,067 sales in October 2013
- 60.9% increase over 790 sales in October 2012
APARTMENT/CONDO SALES: 1,268 - October 2014
- 15.5% increase over 1,098 sales in October 2013
- 57.9% increase over 803 sales in October 2012
ATTACHED HOME SALES: 518 - October 2014
- 4.4% increase over 496 sales in October 2013
- 53.3% increase over 338 sales in October 2012
MLS® HPI BENCHMARK PRICES:
- All residentail in Greater Vancouver: $637,000. 6.0% increase over October 2013
- Detached homes: $995,100.7.9% increase over October 2013
- Apartment/Condo: $380,200. 4.0% increase over October 2013
- Attached homes: $479,500. 4.7% increase over October 2013
NEW LISTINGS: 4,487 - October 2014
- 4.0% increase over 4,315 new listings in October 2013
- 14.7% decrease from 5,259 new listings in September 2014
TOTAL ACTIVE LISTINGS: 13,851 - October 2014
- 9.2% decline vs October 2013
- 6.6% decline vs September 2014
Source: Real Estate Board of Greater Vancouver (REBGV)