The Purpose of MLS Listings in Real Estate

It would be foolhardy for anyone to delve into real estate without first consulting a reliable multiple listing service (MLS). “Knowledge is power,” after all. Going by that, even homebuyers who developed some knowledge of the real estate market can essentially gain the power to become informed buyers.

An MLS is important because it powers up an important resource called the Home Price Index (HPI). The HPI shows trends in home prices for any kind of house in a municipality, neighbourhood, or region. Essentially, the HPI can help buyers to understand price trends that affect the market value of homes in a target location.

Given that the HPI offers a near precise picture of home pricing trends in a location, buyers can compare prices in an ‘apples-to-apples’ manner. This allows buyers to compare price trends between, say, Vancouver and Calgary, especially if any of them are planning to move to either location.

The HPI can also help buyers by gauging changes in home price over time. Buyers, especially those who do things themselves, can gauge prices for the overall market or for specific categories in a select area. Alternatively, REALTORS® or other real estate brokers can use the HPI to determine the right prices to buy homes.


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