House price index

A House Price Index is like a thermometer that tells us how much the prices of homes (like houses and apartments) are going up or down. Imagine that we have a list of 100 different homes with the prices they were sold for. We can find the average price of all these homes, and that average price is what we call the House Price Index. Over time, and depending on the market, the prices of these homes may go up or down. So if we look back to our list of 100 homes, we can check how their prices have changed. The House Price Index will tell us the average of how much the prices went up or down.