Many homeowners decide to sell their property during the summer months when curb appeal is at its best. They put in long hours preparing the house for sale, making sure that it will show at its best. Then comes the big question – what is my home worth?
REALTORS® are trained to help determine the fair market value of your property, and now Saskatoon Region Association of REALTORS® (SRAR) is offering a new tool to aid in determining the value of a property.
The MLS® Home Price Index, or HPI, is designed to be a reliable, consistent, and timely way of gauging changes in home prices in a specific market area. It is based on comparing attributes and trends that consumers are actually purchasing, and rules out inconsistent changes in average sold price that can be caused by one or two very high or very low home purchase prices. The Index is calculated monthly.
The MLS® HPI tracks price levels at a point in time relative to price levels in a base (reference) period for one- and two-storey single family homes, townhouse/row units, and apartment units. A composite MLS® HPI is also calculated for the collection of these housing categories in each of the housing markets tracked by the index.
Because the HPI works with a base of 100 it is very easy to see how price levels change throughout the reference period. For example, if the base period for single-family homes is 2005, and the MLS® HPI value for single-family homes in December 2011 is 149.1, you know that the value of single-family homes is up 49.1%, compared with 2005 (149.1 − 100 = 49.1%).
If you are thinking of selling or buying a home, please contact me. I can help you.