April 2012 Issue 4   Volume 1 CREA logo

The Funhouse Mirror >>>

The national average home price was down in March from where it stood last year. But home prices are not declining. Confused?

Average prices are affected by changes in the mix of sales, so year-over-year price comparisons can be like looking in a funhouse mirror: distorted.

To illustrate: line up a class of kids by height, calculate the average. Now excuse the ten tallest kids and recalculate the average. The average height has declined, but the kids haven't gotten any shorter.

A year ago, the national average price was pitched up by surging sales activity in some of Vancouver's priciest neighbourhoods. With activity there having subsequently returned to earth, the average has declined.

By contrast, the MLS® Home Price Index (HPI) is not affected by changes in the mix of sales. It's based on a sophisticated model of buyers' willingness to pay for various features that contribute to a home's value, and provides a clear picture of home price trends. The MLS® HPI remains up from year-ago levels, so the reality is that home prices are still climbing in the five major markets that it currently covers. That includes Vancouver, where the average price was down from where it stood last year.

View this month's monthly averages stats release.
View this month's MLS® Home Price Index release.

Coming to a Smartphone Near You

As described in previous issues of NEWS2Me, CREA and your Boards and Associations have been engaged in a Futures strategic planning process to help position our industry for a strong, sustainable future. Important decisions that will affect you are being made and your input is needed. In late May/early June you will receive a series of mini-videos that outline the strategic plan that has been developed collaboratively by over 1,000 of your colleagues across the country. You will be asked to answer a mini-survey on your smartphone, and be invited to visit a website where you can review additional information and provide more detailed feedback. Watch for them!


Quick Links

Panels, Politics, and Political Insiders! Oh My!
An extraordinary line-up of political insiders will take the stage at CREA's PAC Days advocacy conference, May 13 – 15 at the Westin Ottawa. We will also recognize some of the best REALTOR® and Board and Association activists from across the country.

Commercial Snapshot
Each quarter the Canadian Commercial Council of REALTORS® publishes the CCC Snapshot, a compilation of key economic indicators.
View the Spring 2012 edition here. Refresh
Want a sneak peak of innovations coming down the pipe with the view to making an even better consumer site? Click here to view preliminary design concepts and fill out a survey.

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