House Price Indices (HPIs) were originally developed for the financial industry to track changes in house prices for the purposes of trading derivatives instruments in financial markets. They are now widely used to measure changes in residential house prices over time in a specific geographic market.
Developers of HPIs rely on public and/or private data collection and data sets, because house-by-house or owner-based housing sale price surveys over time are unreasonable in terms of cost, time and/or accuracy.
The Teranet-National Bank House Price Index™ is an independent representation of the rate of change of single-family home prices across Canada. It is estimated based on the repeat-sales method of price measurement – a globally accepted standard for the measurement of changes in housing prices. The Teranet-National Bank House Price Index™ plays an important role across lending institutions for business strategy, planning purposes, evaluating risk exposure, capital evaluation across scenarios through stress testing and for accounting standards.
House Price Indices play a significant role in policy development, market and financial regulation for public and private organizations around the globe. The Teranet-National Bank House Price Index™ was developed to provide best-in-class housing market intelligence to Canadian users in order to facilitate robust, evidence-based economic activity and decision-making.