Understanding the MLS® Home Price Index (HPI)

by Barbara Scarlett

When it comes to pricing a home, not all data is equal. Many homeowners focus on average or median prices, but those figures can change dramatically from month to month. The MLS® Home Price Index (HPI), however, provides a consistent benchmark based on the true market value of homes with specific characteristics.

The HPI evaluates trends using extensive MLS® data and advanced statistical modeling. It identifies what defines a “typical” home — size, age, location, and features — and tracks how its value evolves. This approach gives both buyers and sellers a realistic snapshot of value in their area.

For sellers in Fort Erie and surrounding Niagara communities, the HPI is invaluable. It helps avoid the common pitfall of overpricing based on emotion or hearsay. It also gives buyers confidence that a listed price reflects current reality, not past market peaks.

For instance, while average prices can be inflated by luxury properties or new builds, the HPI smooths these variations, showing a more accurate local trend. By aligning your price closer to the benchmark, your listing stands out as well-positioned and fair in the eyes of today’s educated buyers.

The HPI is especially useful in transitional markets like 2025, where prices have softened but remain relatively stable compared to last year. Relying on this index helps homeowners make informed decisions that align with true market conditions.