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:
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
Washington Metropolitan Area
The Composite 20 Index includes all of those and also:
The Phoenix Metropolitan Area
Tampa Bay Area
The Atlanta Metropolitan Area
Minneapolis- St Paul
Charlotte Metropolitan Area
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.