categories
Recent Comments
- Originations: Are Realtors Overpaid? | The Basis Point on Housing Bubble Talk Returns
- 12.61% Dividend Payer Apollo Residential Mortgage Returned 56% In 2012, Uptrend Is Still Strong on U.S. Housing And Residential Mortgage Finance 2013 Outlook: The Nascent Recovery Is Likely To Continue
- Mortgage application fraud is on the rise on U.S. Housing And Residential Mortgage Finance 2013 Outlook: The Nascent Recovery Is Likely To Continue
- Real Estate Investing News This Week 2013-04-13 on A Housing Recovery Is Buttressing U.S. Homebuilders’ Credit Quality
- Tuesday Morning Links | timiacono.com on As The Market Recovers, U.S. Single-Family Housing Activity Builds
tags
10-City Composite 20-City Composite Atlanta Boston Chicago condo prices Dallas David Blitzer Detroit Economy and Real Estate Existing Home Sales home prices Las Vegas latest results Los Angeles Miami mortgages MSAs New York Phoenix residential real estate S&P/Case-Shiller S&P/Case-Shiller Home Price Indices report S&P/Experian Consumer Credit Default Indices San Francisco US Housing Prices
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
3 Comments
In looking at the April index figures for the Chicago market, each of the tier indices are down more than the aggregate index for the Chicago market. It seems to be the case for both sa and non-sa. How can this be the case? Thank you!
Hi Mark,
In Chicago, low-tiered home prices fell by 3.8% in April over March, mid-tiered by 0.9 and high-tiered prices were up 0.3%. The aggregate index was down 0.4%. So, we are not seeing the results you have stated.
However, on rare occasions when this does happen it is a technical phenomenon that has to do with the way the repeat-sales model works.
The tiered home price indices are estimated independently from each other and the aggregate home price indices. This means that there is nothing that constrains changes in the aggregate index to track within the range of changes in the tiered indices. So, although it doesn’t happen very often, it is possible for the month-to-month change in an aggregate index to fall outside the range of changes in the tiered indices.
There are two main reasons why this might happen: 1) since they are calculated using approximately one-third of the aggregate sample, the individual tiered index points are estimated with less precision and, consequently, they are more volatile from period to period. And 2) the relative weighting of pairs in the tiered and aggregate index calculation is not the same. In particular, when the robust weights are assigned to repeat sale pairs to control for outliers in the data sample, the pairs that the model identifies as an outlier in the aggregate sample may be different than the outliers identified in the estimation of the tiered indices.
Superb, comprehensive and very timely answer. Thank you so much!
April Seasonal Boost in Home Prices According to the S&P/Case-Shiller Home Price Indices
Data through April 2011, released today by S&P Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show a monthly increase in prices for the 10- and 20-City Composites for the first time in eight months…
To access click: S&P/Case-Shiller Home Price Indices June 2011 Release