HPI charts - Sept 2017

The MLS Home Price Index (HPI) is supposed to act like the more familiar Consumer Price Index (CPI). While the CPI tracks the price of a basket of goods, the HPI tracks the price of a basket of house attributes. For a more detailed look into how the HPI works, check out this blog post.

Similar to the monthly Toronto real estate market charts, the full set of HPI charts (with the charts much larger and more legible) are available as a SlideShare report

 

The HPI isn't as volatile as average prices

That is one of the benefits of it. Here's a comparison with the 416 average price (which takes into account all 416 housing types, which is about half condo apartment sales).

 

How do the indexes compare across housing types?

The composite index is made up of constant weights of 4 different benchmarks. As you'd expect, the composite index lies in between the highs (condo apartments) and lows (single family detached houses).

 

Example benchmark: SF Detached

The benchmark single family detached home has come down $135K since the high in May. The average detached price in the 416 reached a high of $1,582K in March, and has come down to $1,355K in September - a decline of $227K.

Below is how those benchmark prices compare to last year's numbers.

The above charts for the other benchmark housing types (SF Attached, Townhouses, Apartments) are available on the SlideShare report

 

 

About Scott Ingram CPA, CA, MBA

I take a "Moneyball" approach to real estate - where both quantitative trends and qualitative information are important. Keeping on top of trends is especially vital in today's rapidly shifting Toronto real estate market. I will dig into numbers most realtors can't or don't, to help you make the right buying or selling decisions for your situation. You'll find my accountant-honed analytical skills and business strategy experience combined with my hometown knowledge and passion are great to have at your back: Your home is the single largest investment you'll make - trust it with an accountant.

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Scott Ingram

Scott Ingram

REALTOR®
CENTURY 21 Regal Realty Inc., Brokerage*
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