A standardized price metric calculated using the MLS Home Price Index (HPI) that represents the price of a 'typical' home in a given area. Unlike average or median prices, the benchmark price adjusts for differences in property types and features, providing a more apples-to-apples comparison over time. It's designed to filter out the noise of luxury sales or unusual transactions.
Why It Matters
Benchmark prices are the most reliable indicator of whether home values are actually rising or falling in a specific neighbourhood. Average and median prices can be skewed by a single luxury sale or a change in what's selling. The benchmark price cuts through that noise.
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