New Price Measurement Tool Shows Calgary Home Prices Up From a Year Ago

The value of homes in Calgary increased in January 2012 by 2.7 per cent over the value in 2011, according to a new price measurement tool that's been approved by both academic and financial industry experts, including the Bank of Canada.

The new MLS^® Home Price Index (HPI) was recently introduced by the Canadian Real Estate Association in partnership with Canada’s five largest real estate boards, including Calgary.

The new tool measures how properties are valued in the market, rather than relying on average and median prices. In January, for example, the average price declined year-over-year, but only because more homes were sold in the lower-price ranges compared to the previous year, when more luxury home sales occurred.

“By combining information from the MLS^® HPI with their own knowledge, experience and skills, Realtors can help their clients approach one of life’s most important decisions – that of buying or selling a home – with greater confidence,” says Bob Jablonski, president of CREB^®.

The MLS^® HPI is calculated using a sophisticated statistical model that estimates home prices based on their quantitative and qualitative features that are typical to that neighbourhood, such as square footage, number of rooms above the basement level, number of bathrooms and half-bathrooms, whether the property has a fireplace and/or finished basement, lot size or the age of the property, to name a few.

“The MLS^® HPI is the best tool to determine true price trends in the market,” says Ann-Marie Lurie, CREB^® chief economist. “The commonly used average and median prices can be misleading as they are easily affected by the composition of what is sold.”

For buyers and sellers, the MLS^® HPI determines what a typical home is valued at in their neighborhood, as well as how this compares to other neighborhoods. In addition, it provides a true price trend for their community.

“We are excited to be able to offer the purest, most accurate housing data that is currently available,” Jablonski says. “The MLS^® HPI can be used to not only determine pricing trends, but also to gain insight into the typical home in a specific market segment, adding value to the existing tools Realtors can use to value homes for both buyers and sellers.”

The Calgary Home Team uses the most up-to-date tools to provide current, timely information to our clients. When you're ready to buy or sell a home in Calgary, we are your real estate agents of choice. Be sure to use our quick and easy search feature. We're the experts, and we're here to help you! Contact the Calgary Home Team today for more information on how we can help you achieve your real estate goals at: 403.519.9102 or via email.