Overview of the Sp Case Shiller Home Price Index

Standard and Poor’s tracks the change in value of real estate across the country and in 20 metropolitan areas using the S&P Case-Shiller Home Price Index. These indices have become the leading measure of real estate values in the United States and the method by which the data on home values has been compiled. The values of these indices is published monthly, with the values reflecting data from two months ago.

How is this information calculated?

The S&P Case-Shiller Home Price Index uses a “repeat sales methodology” to measure price changes in real estate. This method was developed through the research of Karl Case and Robert Shiller and is considered the most accurate way to measure the price fluctuation of real estate.

The repeat sales methodology collects actual sales data on single family homes. When a home is sold, it compares the sale price of the home to the purchase price. The difference in the price is measured and recorded. All the sale prices in a region are recorded together and used to compile the index.

Fiserv inc is the calculation agent for the S&P Case-Shiller Home Price Indices.

What areas does this index cover?

In addition to the national home price index there are individual indices for twenty metro areas. There is an index that measures all twenty: the Composite 20 Index as well as an index that measures half of those: the Composite 10 Index.

The Composite 10 Index measures the larger metropolitan areas within the United States. While the Composite 20 Index measures those same metropolitan areas as well as the next ten largest areas.

The Composite 10 Index includes the following metropolitan areas:

Greater Boston

The Chicago Metropolitan Area

The Denver-Aurora Metropolitan Area

The Las Vegas Metropolitan Area

Greater Los Angeles

South Florida Metropolitan Area

New York Metropolitan Area

San Diego County, California

San Francisco

Washington Metropolitan Area

The Composite 20 Index includes all of those and also:

The Phoenix Metropolitan Area

Tampa Bay Area

The Atlanta Metropolitan Area

Metropolitan Detroit

Minneapolis- St Paul

Charlotte Metropolitan Area

Greater Cleveland

The Portland Metropolitan Area

The Dallas/Ft Worth Metroplex

The Seattle Metropolitan Area

The S&P Case-Shiller Home Price Index measures the change in value of single-family homes within the United States. This is done by comparing the sale price of homes to recent sale values. These indices track the United States as a whole and 20 metropolitan areas. It is the most effective way to track changing home values.