Teranet-National Bank House Price Index™: Why You Should be Following This Valuable Data
Paying attention to real estate trends helps you to plan better. Being able to monitor and predict changes in the real estate market can help not only in your marketing but also makes your real estate business more competitive overall because you can shift your focus as the market dictates.
With so many house price indexes and reports available, it can be a challenge to know which ones to rely on. In this regard the data source is key. The Teranet-National Bank House Price Index™ is an independent representation of the rate of change in Canadian single-family home prices. The data used to formulate the reported results is based on the property records of provincial land registries, where the sale price is available, which makes it the most accurate.
The Teranet-National Bank House Price Index™ is particularly useful because it provides an accurate and complete portrayal of home price shifts over time. Data derived from local MLS® systems only includes listed transactions and therefore isn’t reflective of all the activity.
The Teranet-National Bank House Price Index™ is estimated by tracking observed or registered home prices over time. The Index utilizes the repeat sales methodology which considers all properties that have been sold at least twice in the calculation. This methodology involves the averaging of price appreciation from different pairs of sales using a complex estimation process in which each pair is a separate observance. Properties that are not considered include non-arm’s length sales, change of type of property (e.g. after renovations), data errors, and high turnover frequency.
Only completed transactions are used in the calculations, including private and listed sales as well as transfers. It is estimated there are 20% more sales considered based on this additional data in comparison to other indexes data sources like the MLS®. In addition, the data is gathered up to three months before the index is released so you know you are looking at final numbers.
The Teranet-National Bank National Composite House Price Index™ is posted monthly (click here to view the schedule) and covers 11 markets across Canada that include Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa, Montréal, Québec, and Halifax.
Following the Teranet-National Bank House Price Index™ guarantees you accuracy and trends over time that make you more agile and competitive. For more information about the Teranet-National Bank House Price Index™ for real estate professionals please visit the HPI website. You can also follow the Twitter and LinkedIn pages to view the new data as soon as it’s available.