"The whole team at Advisors Mortgage have such great communication. They answer all your questions in such depth, and they are available regularly to help navigate any issues that may arise. I’m so glad I chose them as my lender!!"
samantha f
Case Shiller and FHFA Home Price Index Reports – Released July 2023
The Case-Shiller Home Price Index (CSHPI) and the Federal Housing Finance Agency (FHFA) House Price Index are two prominent measures used to track and report changes in residential real estate prices in the United States. Both indices provide valuable insights into the housing market's performance, but they differ in terms of methodology and scope.
Case-Shiller Home Price Index (CSHPI):
The Case-Shiller Home Price Index is named after the economists who developed it: Karl Case, Robert Shiller, and Allan Weiss. It is now managed and published by S&P Dow Jones Indices. The CSHPI is released on a monthly basis and tracks changes in the prices of single-family homes in specific metropolitan areas, as well as a national composite index.
Methodology:
The CSHPI uses a repeat-sales methodology, which means it tracks the price changes of individual properties over time. It follows the sales of the same properties at different points in time to calculate the percentage change in home prices.
The index is based on a three-tiered approach, categorizing homes into three price tiers (low, middle, and high) to provide a more detailed analysis of the market's performance.
Coverage:
The CSHPI covers 20 major metropolitan areas in the United States, including cities like New York, Los Angeles, Chicago, and others.
It also provides a composite index that represents a weighted average of all these metropolitan areas, giving a broader view of the national housing market.
Federal Housing Finance Agency (FHFA) House Price Index:
The FHFA House Price Index is published by the Federal Housing Finance Agency, an independent regulatory agency overseeing government-sponsored enterprises in the housing finance sector, including Fannie Mae and Freddie Mac. The FHFA House Price Index is released on a monthly basis and tracks changes in single-family home prices throughout the entire United States.
Methodology:
The FHFA House Price Index uses a repeat-sales methodology similar to the Case-Shiller Index, following the price changes of individual properties over time.
It takes into account the mortgage data from Fannie Mae and Freddie Mac to calculate changes in property values.
Coverage:
The FHFA House Price Index covers all 50 states and includes data on home prices from both urban and rural areas.
It also provides a comprehensive national index, which reflects the overall performance of the entire U.S. housing market.
Both the Case-Shiller Home Price Index and the FHFA House Price Index are important tools for economists, policymakers, and real estate professionals to gauge housing market trends, identify potential bubbles or declines, and make informed decisions related to real estate investments. However, it's essential to consider the limitations of these indices, such as potential time lags in reporting data and the focus on single-family home prices, which may not fully capture the entire housing market's dynamics.
Case-Shiller Home Price Index (CSHPI):
The Case-Shiller Home Price Index is named after the economists who developed it: Karl Case, Robert Shiller, and Allan Weiss. It is now managed and published by S&P Dow Jones Indices. The CSHPI is released on a monthly basis and tracks changes in the prices of single-family homes in specific metropolitan areas, as well as a national composite index.
Methodology:
The CSHPI uses a repeat-sales methodology, which means it tracks the price changes of individual properties over time. It follows the sales of the same properties at different points in time to calculate the percentage change in home prices.
The index is based on a three-tiered approach, categorizing homes into three price tiers (low, middle, and high) to provide a more detailed analysis of the market's performance.
Coverage:
The CSHPI covers 20 major metropolitan areas in the United States, including cities like New York, Los Angeles, Chicago, and others.
It also provides a composite index that represents a weighted average of all these metropolitan areas, giving a broader view of the national housing market.
Federal Housing Finance Agency (FHFA) House Price Index:
The FHFA House Price Index is published by the Federal Housing Finance Agency, an independent regulatory agency overseeing government-sponsored enterprises in the housing finance sector, including Fannie Mae and Freddie Mac. The FHFA House Price Index is released on a monthly basis and tracks changes in single-family home prices throughout the entire United States.
Methodology:
The FHFA House Price Index uses a repeat-sales methodology similar to the Case-Shiller Index, following the price changes of individual properties over time.
It takes into account the mortgage data from Fannie Mae and Freddie Mac to calculate changes in property values.
Coverage:
The FHFA House Price Index covers all 50 states and includes data on home prices from both urban and rural areas.
It also provides a comprehensive national index, which reflects the overall performance of the entire U.S. housing market.
Both the Case-Shiller Home Price Index and the FHFA House Price Index are important tools for economists, policymakers, and real estate professionals to gauge housing market trends, identify potential bubbles or declines, and make informed decisions related to real estate investments. However, it's essential to consider the limitations of these indices, such as potential time lags in reporting data and the focus on single-family home prices, which may not fully capture the entire housing market's dynamics.