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With the industry becoming increasingly competitive, sales professionals need resources that keep them in-the-know. In order to stand out, you need information that empowers you to make decisions.
There are two real estate resources every sales professional should use: the Teranet-National Bank House Price Index and the Teranet Market Insights Report.
Here’s what you need to know.
The Teranet-National Bank HPI is an independent representation of the rate of change of Canadian single-family home prices.
The measurements are based on the property record of public land registries, where the sale price is available.
The Index is released every month and looks at 11 market across Canada: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa, Montréal, Québec, and Halifax.
How it works:
The Index is estimated by tracking the observed or registered home prices over time. Properties with at least two sales are required in the calculations.
All properties that have been sold at least twice are considered in the calculation of the index; this is known as the repeat sales methodology.
Properties that are not considered include those with:
a) non-arms-length sales,
b) change of type of property, for example after renovations,
c) data error, and
d) high turnover frequency (biannual or higher).
In the repeat sales methodology, the averaging of price appreciation from different pairs of sales is done using a complex estimation process in which each pair is a separate observation.
Why you should use it:
The HPI is particularly useful because it can give an accurate portrayal of home price shifts over time. The data is derived from the property records of public land registries — so you know it is accurate and trustworthy.
Often real estate agents look at house price figures from local MLS sales information. This isn’t necessarily a bad gauge, but it’s important to consider the Teranet HPI, too. That’s because the prices Teranet uses have been agreed to up to three months before the index is released and only finished transactions are used. If a sale falls through, the MLS data won’t always be accurate, but with the Teranet HPI you know you are looking at the final numbers.
The Teranet HPI also includes all transfer data, not just sales done through the MLS. This means there’s an estimated 20% more sales included — that could look like one in five sales being excluded from MLS reports.
Again, both should be taken into consideration, but if you are looking for accuracy and trends over time, the Teranet-National Bank House Price Index is a report you won’t want to miss.
The second report you’ll want on your regular reading list is the Teranet Market Insights Report.
This release takes into account all recent trends in the Canadian real estate market — everything from house prices, to mortgage broker-lender share, to dwelling type popularity, to generational buying habits, and beyond.
Each MIR release deep dives into a different part of the housing market. For instance, the October 2018 report examined the surge in private lending, while the March 2018 report looked at the Canadian condo market.
This is a great way to stay on top of trends and patterns and then use that information in your real estate marketing.
How it works:
Analysts at Teranet watch the Canadian housing market, using data derived from provincial land registries. They synthesize that data into analysis that takes a high-level look at the current real estate market.
Why you should use it:
The Teranet MIR is one of the most comprehensive real estate reports available in the Canadian market. The data within is sourced from information you can trust. The unique position of Teranet in the real estate market means that they have a view of the industry that is difficult to parallel.
The data contained in the MIR is applicable in many ways — you can use it in your real estate marketing, business strategy, property searches, and more.
If you have any interest in following industry trends, this is the report for you.
These resources can both be gamechangers, especially if your industry is feeling saturated. They can help you find new opportunities and look at the market in ways you may not have considered.
After reading the reports, you may want to put the information to use through your real estate tools — like GeoWarehouse, which uses the same information as the Teranet HPI and MIR.
You can access up-to-date property searches, comparable sales, demographic reports, and more.
Learn all about it today. Call 1-866-237-5937 or visit www.geowarehouse.ca.