Maine Real Estate | Case-Shiller Home Price Index
Maine Home Connection
Home Home About Us About Us Contact Us Contact Us
MHC MHC MHC MHC MHC MHC
Buyers Sellers Stats Maine Blog Properties
Explore Communities
Search All Properties
Weekly Open House
Local Lifestyle Videos
Your Home's Value
Waterfront Real Estate
Relocation Services
Featured Listings
Home Finance & Mortgage
Retirement in Maine
Real Estate Investing
Featured Properties
Enter a keyword to search the site

Features & Services
  
Your Home's Value
My Home's Value:
Receive a Report of  Your Home's Value 
New ConstructionGreen Homes: 
Guidelines, Builders, Green Homes
Your Homes ValueMarket Insights:
Current Home Sales Reports & Statistics 
Sold PropertiesSold Data:
View All Recent Home Sales History
Left-MarketingHome Marketing:
Maximum Exposure© Home Marketing 
  
...Manage Your Account
  
Login
Existing Users:
Login with your email address only
Existing UsersNew Users: 
Simple signup to view   all Maine properties.
Contact Us
Contact Us:  
Call or email us with your questions.
  
Newsletter Signup
 

Maine Real Estate News & Notes
The Case-Shiller Home Price Index - September 2008

Maine Real Estate NewsHave you ever heard of the Case-Shiller Index?  In press releases from Standard & Poor’s – who compile the Index – it has been portrayed as being "the leading measure of U.S. home prices." This may or may not be true, but understanding how it is complied and what it means is important in deciphering the many contradictory claims about the national housing market.

The most recent home price report was recently completed for the first six months of 2008 and the results are included in the report: 2008 Home Prices - First 6 months.

An Overview:

The Case-Shiller Home Price Index measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. The index uses the repeat sales pricing technique to measure housing markets. First developed by Karl Case and Robert Shiller, this methodology collects data on single-family home resales, capturing resold sale prices to form sale pairs. This index family consists of 20 regional indices and two composite indices as aggregates of the regions.

The overall Index is calculated monthly and published with a two month lag.  For a summary of how the index is compiled and the metro areas included, S&P has prepared the report: Index Summary.

Some Concerns:

Case-Shiller IndexThe Index does not include price data from all states, and some of those excluded (such Idaho, Montana and Wyoming), have experienced some of the highest home appreciation in the nation this year. 

Second, the Index has incomplete data in 29 states, which would leave one to question how a true "national" statistics can be provided when the base figures include no data for 26 percent of the states and only partial data for another 58 percent.

Third, the Index does not sample sale prices associated with new construction, condos and multi-family dwellings, since they do not fit the definition of "single family".


Some Conclusions:

As the YTD report indicates, homes prices per the index are 19% below their July 2006 peak, and many analysts say the decline is far from over. The inventory of unsold homes on the market is still very high, they point out, and until that excess is absorbed, it is a buyers' market. Moreover, financial firms, who have been harmed by bad mortgage debt are trying to rebuild cash reserves, making the firms less willing to extend loans to would-be buyers.

And the combined effects of the housing and credit crises have damaged the balance sheets and credit-worthiness of many households, leaving them a high hurdle to buying a new home. Yale University professor Robert Shiller, the co-creator of the Case-Shiller index, is among those who think it will be some time before prices stabilize.

But in a paper presented before the Brookings Institution in Washington September 11th, Mr. Case argues there is cause for optimism. He notes that of the 20 metropolitan areas covered by the Case-Shiller index, nine have shown prices slightly improving in recent months. He also says that the relationship between incomes and home prices has neared a level seen at the end of past housing slumps.

So, even between the creators of the index, there is disagreement.  What a surprise! 

The Case Shiller Index is not the only game in town.When evaluating the state of the real estate market the other leading reporters of national housing trend - OFHEO (the Office of Federal Housing Enterprise Oversight), NAR and Realogy should also be reviewed.  In many cases the information in these studies includes more “actual” transactional data in local markets. We will be providing information on these alternative indexes in future issues. 

    
    
  

Understanding the Market

Getting accurate information about the latest market trends is critial to making a good decision about Maine real estate.  Access the latest sales statistics on our site.  Follow the link below:

Get the Latest Sale Info

 

Helping You Move

Digital Relocation GuideVisit Portland
Search for HomesExplore Maine

Access any of the feature above to make your move to a new home easier and more rewarding.

Customize Your Search

Our home search is extremely easy to use and features the most up to date technology.  Select your price range, location, waterfront type and home style. 

Receive email updates of all matching properties. You will have access to all properties for sale in the Maine MLS. 

 


        
 
Buying Your Home Heart and Mind Buyer Agency
Exclusive Services Agency Relationships Title Insurance
Home Buying Process Advice and Strategy
Affect of the Economy Determining A Price First Time Buyers Viewing Homes Second Homes Home Search Strategy Waterfront Real Estate
Common Forms
Selling Your Home Your Home's Value Home Marketing
Digital Photography High Definition Video Property Storyboard Virtual Staging Internet Marketing
Pricing Factors Advice and Strategy
Counteroffers Establishing a Price Listing Agreements Feng Shui Principles Considering Repairs Value of Improvement Choosing A Realtor Common Mistakes
Home Selling Process
Stats
Maine Maine History Maine Geography Maine Economy Maine Demographics Maine Education Maine Climate Maine Beaches
Maine Real Estate Blog
Search for Properties Hyper Local Search Preset Local Searches
Maine Communities Portland South Portland Scarborough Falmouth Cape Elizabeth Cumberland Yarmouth Old Orchard Beach Freeport Harpswell
Search For Homes Maine Map Search Detailed Property Search Search By Address Search By MLS Number
Open House
Local Lifestyle Videos
Home Valuation
Waterfront Real Estate Coastal Maine
Maine Coastal Properties
Maine Lakes
Maine Lake Properties
Maine Rivers Casco Bay Islands Waterfront - FAQ's
Relocation Services Relocation Package Maine Counties Quality of Life Education and Schools Art and Culture Property Tax Rates Common Relocation FAQs Moving Long Distance
Mortgage Center Mortgage Types Credit Scoring Fee & Closing Costs Mortgage FAQs
Retirement in Maine Retirement Planning Retirement Communities Changing Demographics
Real Estate Investing Vacation Homes 1031 Tax Exchanges Condos and Townhomes Remodeling: Cost vs Value