HPI charts - September 2017

Thursday Oct 12th, 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

Would you like to make better-informed real estate decisions? I believe knowledge is power. For that reason I invest a lot of time researching and analyzing data and trends in the Toronto real estate market. My Chartered Accountant (CPA, CA) side also compels me to perform a lot more due diligence on properties my clients are interested in purchasing. If you have better information, you should have less risk and be in a position to make better decisions for your hundreds of thousands of dollars.

Your home is the single largest investment you'll make - trust it with an accountant.

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