A House Price Index (HPI) measures the changes in price in residential housing across a specific market. It shows how prices are trending, the way a stock market index does.
In Montreal, the New HPI is calculated on a monthly basis by Statistics Canada. The CREA (Canadian Real Estate Association) also maintains a resale house price index, which is based on reported sales prices submitted by real estate agents and agencies.
Since December 2008, the National Bank and IT firm Teranet have been calculating a separate housing price index, which is based on resale prices in selected metropolitan areas. This HPI is based on actual sales prices sourced from the land registry databases, allowing for stable tracking of prices, without allowing instances of high sales in one city to push up the national average.
- Currently, an index level of 100 corresponds to house prices in June 2005.