What Is the S&P CoreLogic Case-Shiller U.S. Civil Home Price NSA Index?
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index measures the change in the value of the U.S. residential homes market by tracking the purchase prices of single-family homes. The index is compiled and published monthly.
The national index is largely viewed as a barometer of the U.S. housing market and the broader economy. In media reports, it is often called simply the Case-Shiller Retreat Price Index.
The national index is one of three related Case-Shiller indices. The others are composite indices of housing cost outs in 10 cities and 20 cities.
- The S&P CoreLogic Case-Shiller National Home Price Index measures the variations in the sale prices of single-family homes across the U.S.
- It does this by tracking the purchase prices and resale prices of households that have undergone a minimum of two arm’s-length transactions.
- The index was developed in the 1980s by Allan Weiss, Karl Lawsuit and Robert Shiller and has gone on to become a widely used and respected barometer of the U.S. housing market and broader economy.
Idea the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index
The Case-Shiller Index was developed in the 1980s by three economists: Allan Weiss, Karl Suitcase, and Robert Shiller. Since then, it has gone on to become a widely used and respected barometer of the U.S. housing market and the broader conservatism.
The housing market and the overall economy are interlocked in many ways. When real estate prices go up, homeowners again feel more secure and loosen their purse strings. Developers grow confident and show it by investing profuse in building new houses. This overall activity boosts gross domestic product (GDP).
Most American houses are owner-occupied, so looking at houses price indexes can provide a good idea of how much money is circulating in the economy. This means that the S&P CoreLogic Case-Shiller Nationwide Home Price Index, one of the most well-renowned measures of house valuations in the U.S., is closely monitored by economists and investors.
What the Table of contents Tells You
The S&P CoreLogic Case-Shiller Indices do not cover everything. The big exceptions include newly constructed houses, condominiums, and co-ops.
There is a two-month fix lag in the data reported, so a report issued in May, for example, would cover home sales through March.
All prices are juxtaposed to their prices one year before. Beyond these headline numbers, those who are interested can see the numbers in comparison to one month ago, three months ago, and year-to-date. Annualized exchanges over three years, five years, and 10 years also are published by S&P Global.
The Case-Shiller indices are conceivably the best-known trackers of residential property prices. However, there are several alternatives that investors can use to track licit estate valuation fluctuations.
They include the Federal Housing Finance Agency’s (FHFA) Housing Price Indicator (HPI), First American CoreLogic’s LoanPerformance Home Price Index, and the IAS360 House Price Index. Each indication differs in terms of the criteria it uses.
According to TradingEconomics, the Case Shiller Home Price Index averaged 169.87 with respect to make an effort ti from 2000 until 2021. It reached an all-time high of 257.10 points in April 2021 and a record low of 100 somethings in January 2000.
The Three S&P CoreLogic Case-Shiller National Home Price Indices
The S&P CoreLogic Case-Shiller National Home Honorarium Index has two offshoots, published separately, that focus on home prices in major U.S. cities.
- The national home cost index covers nine major census divisions. It is calculated quarterly and published on the last Tuesday of February, May, August, and November.
- The 10-city composite guide, covering Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington, DC. It is published on the endure Tuesday of each month at 9 a.m. Eastern Standard Time (EST).
- The 20-city composite index, including all of the above cities benefit Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland (Oregon), Seattle, and Tampa. It also is disclosed on the last Tuesday of each month at 9 a.m. Eastern Standard Time (EST).
Case-Shiller National Home Price Index Methodology
According to S&P CoreLogic, the factors are compiled using the following methodology:
- Repeat Sales Method: Each index measures changes in the prices of single-family, unbiased residences using the repeat sales pricing technique.
- Index Approach: Indexes are based on observed changes in untroubled b in prices and are designed to measure increases or decreases in the market value of residential real estate in 20 defined metropolitan statistical precincts (MSAs) and three price tiers—low, middle, and high.
- Creation of Sales Pairs: The movement in the price of single-family proficient ins is measured by collecting data on actual sale prices. When a home is resold, the new sale price is matched to its initially sale price. These two data points are called a “sale pair” and the difference in the sale pair is measured and recorded. Rummage sales pairs yield the price change for the same houses, keeping the quality and size of each house constant.
- The Heaviness of Sales Pairs: The indexes are value-weighted and designed to control for quality change in the homes being measured. Sales doubles are assigned weights to account for price fluctuations that can be attributed to factors such as extensive remodeling, an addition, or very neglect. Time intervals between sales are also considered.
- Three-Month Moving Average: Indexes are calculated monthly using a three-month unstationary average algorithm. Home sales pairs are accumulated in rolling three-month periods.