What is the HPI – Home Price Index?

The home price index or HPI is modeled after the Consumer Price Index, which measures the rate of the price change for a basket of goods and services (e.g. food, clothing, shelter, etc.).  The HPI provides a more accurate picture of market trends for a specific area or housing type in Victoria than using average prices.

The Victoria Real Estate Board started using the HPI in 2015 to track trends in over 150 neighbourhoods in the Greater Victoria region.  Because the HPI tracks changes of “middle-of-the-range” or “typical” homes and excludes extreme high-end or low-end properties, it is the best and purest way of determining price trends in the real estate market.

Typical homes are defined by various quantitative property values (e.g. above ground finished square feet, lot size, number of bedrooms, etc.) and qualitative house features (e.g. location and proximity to schools, transportation, etc.)  The definition and variables will change depending on which Victoria neighbourhood you are analyzing. For example, a “typical” two story house in Rockland will be different than one in Oak Bay, Fairfield, etc.

How does the HPI affect the sale price of my home?

The home price index gives an indication of price changes for homes in specific areas of Greater Victoria over time.  As no two properties are alike, you should be careful in how you interpret HPI data and it should never be used as the sole factor when deciding how much your home is worth.  As your Realtors, the HPI is only one of many data points we analyze when completing a market valuation on your property.

If you want to know more about the HPI or what your home is worth, contact us for a complimentary market valuation.