In short
Average prices jump around depending on what happened to sell that month. The HPI smooths that out by comparing like with like.
It's the best way to see the real trend in an area.
Why the HPI exists
Average and median prices move around based on what sold that month. If more large detached homes sell in June than in May, the average jumps even if no home got more valuable.
The HPI was built to fix that. It compares like with like, so a rise or fall reflects real price movement rather than a different mix of sales.
That's why the HPI is the figure most often used to answer the question of whether prices in an area are really going up or down.
How CREA calculates it
CREA runs the index using MLS® System sales data and statistical models. For each area and home type, it defines a benchmark home: a virtual, typical property whose features sit near the middle of what actually sells there.
The model estimates what features such as above-grade rooms, bathrooms and square footage add to price, then uses that to value the benchmark home each month.
Since a 2022 update, the benchmark's features are based on a rolling five-year window of sales and are reviewed every year, so the typical home keeps up with what is being built and sold today.
Benchmark prices for Ottawa
The Ottawa Real Estate Board (OREB) publishes MLS® HPI benchmark prices every month, broken out by home type such as single-family, townhouse and apartment, along with a composite for all types.
Looking at the benchmark by type is useful because different segments can move in opposite directions in the same month.
What the HPI can and can't tell you
It's a strong guide to the trend in an area. It is not an appraisal of any specific home, and your home's value depends on its own size, condition, lot and street.
For a price on a particular property, a comparative market analysis or an appraisal looks at recent nearby sales of similar homes.
Very small areas or rare home types may not have enough sales for a reliable benchmark, which is one reason CREA reviews which benchmarks it tracks.
Common questions about MLS® home price index
What is the MLS® Home Price Index?
The MLS® Home Price Index is CREA's measure of how the price of a typical benchmark home changes over time. It adjusts for differences in the homes that sell each month, so it shows the underlying price trend more reliably than average sale prices.
What is the difference between the benchmark price and the average price?
The benchmark price is the modelled value of a typical home, while the average price is simply total sales dollars divided by the number of sales. The average can swing with the mix of homes sold, but the benchmark compares like with like.
Where can I find the HPI benchmark price for Ottawa?
The Ottawa Real Estate Board publishes benchmark prices in its monthly market update. Figures are broken out by single-family homes, townhouses and apartments, plus a composite, and CREA also posts them on its statistics site. Compare the same month year over year to avoid seasonal swings.
Does the HPI tell me what my home is worth?
No, the HPI shows the trend for a typical home, not the value of yours. Your home's price depends on its own features, condition and location, which a comparative market analysis or appraisal can assess. The HPI gives useful context for that conversation.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.