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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