Definition of case-Schiller from S&P and Сcorelogic national Index of housing prices’
The index, which measures the change in the value of the American housing market. The case for housing s&P Сcorelogic national Index of housing prices track the growth in value of the property after the purchase and resale of homes that have at least two market transactions. The index is named after its creators, Karl chase and Robert Shiller.
Breaking down the ‘case-Shiller S&P and Сcorelogic national Index of housing prices’
The case-Schiller S&P and Сcorelogic national Index of housing prices compares the growth rate of residential property. Individual cities can be compared with the index, to see if they surpass the national average. The index covers all nine census divisions of the US population and published quarterly, according to s&P.
The Metro Areas
And Сcorelogic case-shiller 20-City Composite Index of domestic prices NSA seeks to measures the value of residential real estate in 20 major US Metropolitan areas: Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, new York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa and Washington, D.C.
The index uses the following methods, according to s&P:
“Repeat Sales Method. Repeat the technique of selling prices, which is widely recognized as the most suitable method for measuring changes in property prices.
• Approach index – the index is based on observed changes in home prices and is designed to determine the increase or decrease in the market value of residential real estate in 20 defined msas and three levels—low cost, medium and high.
• Create pairs sales prices in single family homes is measured by collecting data on actual prices of purchase and sale. When the home is resold, the new sales price meets the first price the sales. These two points are called “sales pair” and the difference in the sale pair is measured and recorded. Steam sales are designed to yield the price change for the same house, while holding the quality and size of each house constant.
• The weighting of sales pairs, the index is a weighted value to control for quality change in the homes of measurements. Sales pairs are assigned weights to account for fluctuations in price, which can be attributed to factors like extensive home remodeling, additions or extreme neglect. The intervals of time between sales is also being considered.
• Three-Month Moving Average.-The index is calculated monthly using a three month moving average algorithm. Pairs of home sales are accumulated in three months.”