The news can be a terrible place to get news — especially when it comes to housing and home values.
The most widely-cited tracker of U.S. home values is a report called the S&P CoreLogic Case-Shiller Home Price Index. It shows home values percent over the last 12 months nationwide.
Home buyers should ignore this reading completely.
The Case-Shiller Index is a summary report of the 120 million homes that make up the U.S. housing market. Averaging those homes into a single, national number might be useful to economists and policy-makers, but it’s unhelpful to individual home buyers who will purchase just a single property.
That’s not the only reason to ignore the S&P CoreLogic Case-Shiller Home Price Index. The home price data that makes up the report is also irrelevant.
- Data is limited 20 metro areas, dominated by cities in California and Florida
- Data comes from real estate contracts that are much as six months old
- Data excludes newly-built houses, condos, multi-unit properties
The Case-Shiller Index is a narrow, outdated look at U.S. housing, and it provides none of the specific information that today’s home buyers need.
It also doesn’t provide data about homes in a particular neighborhood, or on a given street; or, whether a specific house is under- or over-priced; and, it doesn’t offer advice about whether home values will rise or fall in the future.
Mass-produced housing reports like the Case-Shiller Index look backward and help the people who model out housing. They don’t help people like you who want to know what’s happening right now.
Are you a first time home buyer?
Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.
Home buyers snatched up properties for sale in May as housing made its v-shaped recovery.