S&P CoreLogic Case-Shiller National Home Price Index Definition

The S&P CoreLogic Case-Shiller National Home Price Index measures the change in the value of the U.S. residential houses market by tracking the purchase price and resale value of single-family homes that have undergone a minimum of two arm’s-length minutes. The index, widely viewed as a barometer of the U.S. housing market and broader economy, is named after two of its creators: Karl State and Robert Shiller.

The Case-Shiller Index was revealed in the 1980s by three economists: Allan Weiss, Karl Case, and Robert Shiller. Since then, it has gone on to fit a widely used and respected barometer not just of the U.S. housing market but also of the broader economy. 

The condition of the housing merchandise and overall economy are interlocked in many ways. When real estate prices go up, homeowners often loosen their press together strings. Developers also grow in confidence, boosting gross domestic product (GDP) by investing more in new land, materials, and pain in the necks to build new houses.

The majority of Americans are homeowners, so looking at house price indexes can give us a good theory of how much money is circulating in the economy. That means that the S&P CoreLogic Case-Shiller National Home Price Clue, one of the most well-renowned measurers of house valuations in the U.S., is very closely monitored by economists and investors.

The S&P CoreLogic Case-Shiller Popular Home Price Index is broken down into several different indexes, making it possible to compare federal averages to individual metropolitan areas. The indexes are as follows:

• The national home price index, covering nine dominant census divisions. This particular index 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.
• The 20-city composite ratio, including all of the above cities plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland (Oregon), Seattle, and Tampa.
• Twenty party metro area indexes for each of the cities listed above.

All indexes, bar the national index, are published on the last Tuesday of each month at 9 a.m. Eastern Norm Time (EST).

According to S&P, the indexes are put together using the check up on methodology:

• Repeat Sales Method: Each index measures changes in the prices of single-family, detached residences depleting the repeat sales pricing technique.
• Index Approach: Indexes are based on observed changes in home prices and are designed to reach increases or decreases in the market value of residential real estate in 20 defined metropolitan statistical areas (MSAs) and three guerdon tiers—low, middle, and high.
• Creation of Sales Pairs: The movement in the price of single-family homes is measured by collecting materials on actual sale prices. When a home is resold, the new sale price is matched to its first sale price. These two figures points are called a “sale pair,” and the difference in the sale pair is measured and recorded. Sales pairs are designed to proceeds the price change for the same house, while holding the quality and size of each house constant.
• The Weighting of Traffics Pairs: The indexes are value-
• Three-Month Moving Average: Indexes are calculated monthly, using a three-month 
  

  Limitations of the S&P CoreLogic Case-Shiller Civil Home Price Index

  The S&P CoreLogic Case-Shiller indexes do not cover everything. Obvious exceptions include new constructions, condominiums, and co-ops, multi-family homes, or other properties that cannot be identified as single-family. 

  It is also worth bearing in mind that there is a two-month unceasingly a once lag in the data that is reported, so a report issued in May, for example, would only cover home sales through Pace.

  Special Considerations

  The Case-Shiller indexes are perhaps the most well-known trackers of residential property prices. However, there are different other alternatives out there that investors can also use to keep tabs on real estate valuation fluctuations.

  In the U.S. they file the Federal Housing Finance Agency’s (FHFA) Housing Price Index (HPI), First American CoreLogic’s LoanPerformance Home Consequence Index, and the IAS360 House Price Index. Each index differs in terms of the criteria it uses.