It was with little fanfare last July that Brookfield RPS announced the official launch of their house price index. Brookfield’s offering joins the other two major Canadian housing indices available: the Teranet – National Bank House Price Index™ and CREA’s MLS® Home Price Index.
I don’t think Brookfield’s index was really on the radar until February when Canada Guaranty, a mortgage insurance company, selected Brookfield’s HPI for their underwriting. And just this past week, the newest index received national exposure thanks to a Globe & Mail article.
So how does Brookfield’s index compare to the other two in relation to our Calgary market?
All three indices have differences in methodology and geographical composition. For example, the Calgary number in Brookfield’s public release represents the CMA of Calgary including Calgary, Airdrie, Rocky View County, Cochrane, Chestermere and Crossfield. On the other hand, CREB’s “City of Calgary” category only includes areas within Zone A, B, C, D of Calgary.
Other differences include the base date for the index, (ie. Teranet’s is June 2005 while both Brookfield’s & the MLS® HPI is January 2005) and what properties are included in the calculation. (ie. Teranet only includes properties that have had sold at least twice)
All these differences prevent the three indices from being exactly the same, but that’s obviously a good thing. However, one point that all three indices do agree 100% on is that house prices for Calgary are at all-time highs, surpassing even the previous peak in 2007.
The more housing data the better, and Brookfield’s index is a welcome addition!