Case-Shiller Index Shows Near 6% Home Price Gain

Home prices continue their upward climb. 

Last week, the S&P/Case-Shiller Index showed home prices gaining 5.5 percent during the 12-month period ending November 2012, marking the largest one-year gain in home prices since May 2010.

The Case-Shiller Index measures changes in home prices by tracking same-home sales throughout 20 housing markets nationwide; and the change in sales price from sale-to-sale.

Detached, single-family residences are used in the Case-Shiller Index methodology and data is for closed purchase transactions only.

Between November 2011 and November 2012, home values rose in 19 of the 20 Case-Shiller Index markets, with previously-hard hit areas such as Phoenix, Arizona leading the national price recovery.

The Phoenix market gained 1.4% for the month and was up 22.8% for the previous 12 months combined. 

The top three monthly "gainers" for November 2012 were:

• Phoenix, Arizona : +1.4 percent
• San Francisco, California :  +1.4 percent
• Minneapolis, Minnesota : +1.0 Percent

Only New York City posted annual home value depreciation. On average, homes lost -1.2% in value there.

It should be noted, however, that the Case-Shiller Index is an imperfect gauge of home values.

First, as mentioned, the index tracks changes in the detached, single-family housing market only. It specifically ignores sales of condominiums, co-ops and multi-unit homes. 

Second, the Case-Shiller Index data set is limited to just 20 U.S. cities. There are more than 3,000 cities nationwide, which illustrates that the Case-Shiller sample set is limited. 

And, lastly, the home sale price data used for the Case-Shiller Index is nearly two months behind its release date, rendering its conclusions somewhat out-of-date. 

That said, the Case-Shiller Index joins the bevy of home value trackers pointing to home price growth over the last year. The Federal Housing Finance Agency (FHFA), for example, reported similar home price growth with its November 2012 House Price Index (HPI).

Home values rose 0.6 percent between October and November 2012 nationwide, the FHFA said, and climbed 5.6 percent during the 12 months ending November 2012. 

Economists attribute increasing home prices to higher buyer demand, record-low mortgage rates and the gradual improvement of the U.S. economy.

Case-Shiller Index Posts 4% Annual Home Price Gain

The U.S. housing market continues to make home price gains.

Earlier this week, the S&P/Case-Shiller Index showed home prices gaining 4.3 percent during the 12-month period ending October 2012, marking the largest one-year gain in home prices since May 2010.

The Case-Shiller Index measures changes in home prices by tracking same-home sales throughout 20 housing markets nationwide; and the change in sales price from sale-to-sale. Detached, single-family residences are used in the Case-Shiller Index methodology and data is for closed purchase transactions only.

Between October 2011 and October 2012, home values rose in 18 of the 20 Case-Shiller Index markets, with previously-hard hit areas such as Phoenix, Arizona leading the national price recovery.

The top three "gainers" for the 12 months ending October 2012 were :

• Phoenix, Arizona : +21.7 percent
• Detroit, Michigan :  +10.0 percent
• Minneapolis, Minnesota : +9.2 Percent

Only Chicago and New York City posted annual home value depreciation. On average, homes lost -1.3% and -1.2% in value, respectively.

It should be noted, however, that the Case-Shiller Index is an imperfect gauge of home values

First, as mentioned, the index tracks changes in the detached, single-family housing market only. It specifically ignores sales of condominiums, co-ops and multi-unit homes. 

Second, the Case-Shiller Index data set is limited to just 20 U.S. cities. There are more than 3,000 cities nationwide, which illustrates that the Case-Shiller sample set is limited.

And, lastly, the home sale price data used for the Case-Shiller Index is nearly two months behind its release date, rendering its conclusions somewhat out-of-date.

That said, the Case-Shiller Index joins the bevy of home value trackers pointing to home price growth over the last year. The Federal Housing Finance Agency (FHFA), for example, reported similar home price growth with its October 2012 House Price Index (HPI).

Home values rose 0.5 percent between September and October 2012 nationwide, the FHFA said, and climbed 5.6 percent during the 12 months ending October 2012.

Economists attribute increasing home prices to higher buyer demand, record-low mortgage rates and the gradual improvement of the U.S. economy.

Case-Shiller Index Verifies Home Value Gains Through Q3 2012

The housing market continues to expand.

According to the S&P/Case-Shiller Index, which was released earlier this week, U.S. home prices rose in September for the sixth straight month, climbing 0.3% as compared to the month prior.

On an annual basis, values are higher by 3.0%.

The Case-Shiller Index findings are a composite reading of 20 U.S cities, 17 of which showed home price gains in September. Detroit and Washington D.C. showed slight declines, and New York City showed no change.

Leading the recovery, though, appears to be Phoenix, Arizona. The previously hard-hit city has seen home values gain 20.4% over the last 12 months. Also noteworthy is that Atlanta, Georgia reversed 26 consecutive months of home value declines in September, posting a +0.1% annual growth rate.

Average U.S. home prices have climbed back to mid-2003 levels.

On a month-over-month basis, value change by city varied. San Diego, California and Las Vegas, Nevada both posted gains of 1.4 percent from August, leading the Case-Shiller Index's 20 tracked cities. Minneapolis, Minnesota and Phoenix showed gains of 1.1 percent.

Los Angeles, California rounded out the Top Five, posting a 1% gain month-over-month.

Despite the index's strong findings, however, we should remember to temper our expectations. The Case-Shiller Index -- like most home value trackers -- is wildly flawed. Buyers in Plymouth should follow its gospel with caution.

Here's why.

First, the Case-Shiller Index tracks values for single-family homes only. As a result, it doesn't account for multi-unit homes or for condos and co-ops. This is a big deal in cities such as Chicago and New York where high-rise units are common.

Another flaw in the Case-Shiller Index is that it's 60 days delayed. It's nearly December yet we're still reviewing data from September. In housing market terms, September was a different market. Real-time data trumps data from last season. 

That said, the long-term trends as shown by the Case-Shiller Index, are overwhelmingly positive. As a Case-Shiller Index spokesperson remarked, "It is safe to say we are now in the midst of a recovery in the housing market."

19 of 20 Case-Shiller Index Markets Improve In August

Home value rose to close out the summer, according to the S&P/Case-Shiller Index, a national home-valuation tracker.

Nationwide, values rose 0.9% between July and August 2012 with 19 of 20 tracked markets showing improvement. Only one tracked city -- Seattle, Washington -- showed a decrease, falling just 0.1 percent.

On an annual basis, 17 of the 20 Case-Shiller Index markets improved, led by Phoenix. Home values in the Arizona city are up 18.8 percent from August 2011. The next closest city in terms of home price gains is Detroit, Michigan at 7.6 percent

We should temper our excitement for the August Case-Shiller Index, however. Although it suggests an ongoing U.S. housing recovery, the methodology of the Case-Shiller Index is far-from-perfect. In fact, one could argue that the index is more effective for policy-makers than for actual buyers and sellers of real estate.

There are three reasons for this :

1. The Case-Shiller Index tracks home prices of single-family homes only. Multi-unit homes are excluded.
2. The Case-Shiller Index can be distorted by "discounted" home sales (e.g.; foreclosure, short sale).
3. The Case-Shiller Index publishes on a two-month delay -- data is hardly current.

Beyond the above three points, however, the Case-Shiller Index falls short in another area -- it ignores the basic tenet of housing that "all real estate is local". In using 20 cities to represent the entire United States, the Case-Shiller Index reduces more than 3,100 municipalities into a single "market".

Even within its 20 tracked cities, the Case-Shiller Index fails short as a housing market barometer. This is because -- even with cities -- home values vary. Some Plymouth zip codes perform better than others, for example, as do some streets. The Case-Shiller Index can't capture markets with that level of detail.

National housing data helps in spotting broader trends of growth but provides very little for today's active buyers and sellers of real estate who need "real-time" data. For that, talk to a local real estate agent.

Case-Shiller index Shows Home Values Rising Nationwide, Too

There have been no shortage of "housing market" stories lately. After sinking through much of late-last decade, home values slowly stabilized into mid-2011. By October 2011, values appeared to have bottomed.

Today, nearly five-and-one-half years after the April 2007 housing market peak, home prices are finally showing their ability to rebound. Over the past 12 months, a bevy of housing market data highlights broad-based market growth.

For example, as compared to August 2011, Existing Home Sales are up 9.3 percent nationally; New Home Sales are up 27.7 percent nationally; and home inventories have slipped to multi-year lows in Maple Grove and throughout the country.

Furthermore, multiple home value trackers show home prices rising both regionally and nationwide.

Last week, the government's Federal Housing Finance Agency released its Home Price Index (HPI) -- a metric which tracks how home values change between sequential property sales. HPI showed home values up 3.7% nationally.

Another home valuation tracker -- the S&P Case-Shiller Index -- has shown home values to be rising, too.

As compared to one year ago, the private-sector metric puts home prices higher by 1.2 percent via its 20-city composite. 20 cities remains a small subset of the broader U.S. population, but, in looking for a trend, it's clear that the trend is a positive one.

Some of the Case-Shiller Index highlights from its most recent report :

• All 20 tracked cities showed home price gains between June 2012 and July 2012
• The previously hard-hit city of Phoenix now leads the nation with a 16.6% annual gain
• Versus their respective lows, San Francisco and Detroit are up 20.4% and 19.7%

In addition, on a 12-month basis, only four cities are showing negative home value growth -- Atlanta, Chicago, Las Vegas, and New York City.

The Case-Shiller Index is a national index, though, and specifically does not report on valuation changes in specific U.S. cities and their neighborhoods. For local real estate data, make sure to speak with a local real estate agent instead.

Case-Shiller Index Shows Huge Home Price Gain

Home prices continue to rise nationwide. 

According to the Standard & Poor's Case-Shiller Index, home prices rose 6.9% between the first and second quarter of 2012, the largest quarter-to-quarter gain since the home-value tracker's 1987 inception and another signal that the housing market is in recovery.

The private-sector metric's results are similar to what the government's Home Price Index showed for June, too -- values rising quickly. In addition, for the second straight month, each of the Case-Shiller Index's 20 tracked markets showed month-to-month improvement.

June would have marked three straight months if not for Detroit's value-setback in April.

The top performing markets in June, as tracked by the Case-Shiller Index were :

1. Detroit, Michigan : 6.0 percent gain
2. Minneapolis, Minnesota : 4.8 percent gain
3. Chicago, Illinois : 4.6 percent gain

However, it should be noted that the Case-Shiller Index pulls from a limited sample set. It does not include condominiums or multi-unit homes in its findings, nor does it account for new construction. These exclusions make a material impact on the results of both Minneapolis and Chicago, as examples. Both cities feature a large concentration of condos.

Overall, though, the June data looks sound. Said a spokesman for the Case-Shiller Index, "The market may have finally turned around."

Furthermore, home buyers nationwide can corroborate what the Case-Shiller Index has uncovered. Falling home inventory and rising home demand have helped to move home prices higher in many U.S. markets.

Low mortgage rates make new homes affordable and rising rents are turning the Rent vs Buy equation on its head. In July, according to the National Association of REALTORS®, first-time home buyers accounted for 34% of all home resales.  This trend is expected to continue into 2013.

As compared to one year ago, today's home buyers have 8% more purchasing power and, with rising home prices, they're going to need it.

Case-Shiller Index Shows Home Values Rising Nationwide

According to the S&P/Case-Shiller Index, home values rose 2.2% nationwide, with all 20 tracked markets making month-to-month improvement. On an annual basis, 17 of the 20 Case-Shiller Index markets improved.

Despite the positive report, however, our enthusiasm for the May Case-Shiller Index should be tempered. This is because the index's methodology is less-than-ideal for today's Minneapolis home buyer.

There are three main reasons why :

1. The Case-Shiller Index tracks values for single-family homes only
2. The Case-Shiller Index is distorted by distressed, discounted home sales 
3. The Case-Shiller Index publishes on a 2-month lag

Perhaps even more important, though, is that the Case-Shiller Index ignores a basic tenet of the housing market -- all real estate is local. It's not possible for 20 cities to represent the U.S. housing market as a whole. Even more egregious is that the 20 markets tracked by the Case-Shiller Index don't represent the country's twenty most populated cities.

The Case-Shiller Index specifically excludes home sale data from Houston, Philadelphia, San Antonio and San Jose -- four of the nation's 10 most populated cities. Yet, the index does include data from cities such as Minneapolis, Minnesota and Tampa, Florida.

These two cities rank #48 and #55, respectively.

Furthermore, in its 20 tracked cities, the Case-Shiller Index still manages to fail as a reliable housing market barometer. This is because home values vary by zip code, by neighborhood, and by street, even. All 20 Case-Shiller Index cities showed gains in May, but there remains areas within each metropolitan area in which values outpaced the Case-Shiller Index findings, and areas in which values fell short.

The Case-Shiller Index provides broad, generalized housing market data and that works for an economist. For an active home buyer or seller, though, making smart real estate decisions requires having timely, relevant real estate data at-hand when it's needed. 

For data like that, talk with a real estate agent.

Home Values Start The Year Strong

Home prices started the year on an upswing. 

According to the Federal Home Finance Agency's Home Price Index, home prices rose by a seasonally-adjusted 0.3 percent between January and February 2012. The index is up 0.4% over the past year, offering a counter-story to the Case-Shiller Index's assertion that home values are sinking.

Last week, Standard & Poor's Case-Shiller Index said home values had dropped more than 3 percent in the prior 12 months. 

As a home buyer or seller in Plymouth , data showing "rising home values" or "falling home values" may be of interest to you, but we can't forget that most home valuation trackers -- including both the government's Home Price Index and the private sector Case-Shiller Index -- have a severe, built-in flaw.

Both used "aged" data. Today, the calendar reads May. Yet, we're still discussing February's housing data.

Data that is two-plus months old is of little value to everyday buyers and sellers wanting to know the "right now" of housing. And, even then, characterizing the data as "two-plus months old" may be a stretch. This is because the home values used in the Home Price index and the Case-Shiller Index are collected from actual transactions, but at the time of closing.

Considering that most purchases require 45-60 days to close, we can know that when we look at the Home Price Index and Case-Shiller Index reports for February, what we're really seeing is a snapshot of the housing market as it existed two-plus month plus 60 days ago.

Data that's 5 months old is of little relevance to today's buyers and sellers. Today's market is driven by today's economics.

The Home Price Index is a useful gauge for economists and law-makers. It highlights long-term trends in housing which can be helpful in allocating resources to a particular project or policy. For home buyers and seller throughout Minnesota , though, it's much less useful. Real-time data is what matters to you.

For that, talk to a real estate professional.

Case-Shiller Shows Uneven Recovery For U.S. Housing

Recent data suggests that the U.S. housing market is in recovery. However, the data also shows this to be an uneven recovery.

According to the monthly S&P/Case-Shiller Index, for example, home values rose in three of 20 tracked markets between December 2011 and January 2012. 17 tracked markets showed home prices still in decline.

It's easy to point to the Case-Shiller Index as evidence that the housing market in Minnesota has yet to bottom, but we have to consider the Case-Shiller Index's shortcomings -- specifically in a recovering economy.

For example, the Case-Shiller Index is based on changes in home prices of a single home, through successive sales. This means that to calculate its home price index, the Case-Shiller searches for sales of the same home over a period of time and calculates the difference in contract price. 

This methodology can distort the home price tracker downward during times of weak economy because there is no distinction made for homes sold in foreclosure or as a short sale.

35% of all homes sold in January were "distressed", says the National Association of REALTORS®.

Another distortion in the Case-Shiller Index is that the model neglects all home types that are not of type "single-family residence". This means that multi-unit homes and condominiums are excluded from the Case-Shiller Index model.

In some markets, such as Chicago and New York City, condominiums account for a large percentage of overall sales. 

Lastly, the Case-Shiller Index is published with a "lag", which renders it useless to buyers and sellers of Plymouth in search of real-time, relevant data. The most recent Case-Shiller Index is published with a 60-day delay, and accounts for home purchase contracts written between October and December 2011.

Since October, the U.S. economy has added more than 1 million jobs and the economy has moved into "moderate expansion", according to the Federal Reserve. Data that's two seasons old does little to help us today.

Making sound real estate decisions is about having timely, relevant data at-hand when it's needed. The Case-Shiller Index fails in that respect. It's good for highlighting the U.S. housing market on the whole, as it existed in the past. For real-time market data, though, you'll want to talk with an active real estate agent.

Case-Shiller Index Shows Home Values Rising In Detroit

Standard & Poors released its December 2011 Case-Shiller Index this week. The report is the most widely-cited, private-sector metric for the housing market. The index aims to measures change in home prices from month-to-month, and from year-to-year, in select U.S. cities and nationwide.

According to the report, between November and December 2011, home values fell within 18 of the Case-Shiller Index's 20 tracked markets; and through the 12 months leading up to December 2011, 19 of 20 tracked markets fell.

Only Detroit posted year-over-year gains, adding 0.50% since December 2010. 

Now, these statistics may look dire for the housing market, but it's important to remember that the Case-Shiller Index -- though widely-cited -- remains a flawed statistic for everyday buyers and sellers in Plymouth. Rather, the monthly Case-Shiller Index is more appropriately applied by policy-makers and economists to macro-economic issues than by you and me for buy-or-sell decisions..

There are three ways in which Case-Shiller is flawed -- each tied to the way by which Case-Shiller Index is calculated.

The first reason why the Case-Shiller Index is flawed is that, although it's purported to be a "national" housing index, the index tracks just 20 cities nationwide. The United States, by comparison, houses more than 3,100 municipalities. The Case-Shiller Index is not a representative sample of the U.S. housing market.

And then, even within its tracked markets, Case-Shiller fails provide sufficient details to be useful.

Within each Case-Shiller Index city, there are innumerable "local markets", each with its own local economy. When home values are shown to be falling in Phoenix, for example, that doesn't mean that values are falling everywhere in Phoenix -- only in the aggregate. There are multiple neighborhoods in Phoenix in which home values improved in December.

The Case-Shiller Index doesn't capture that. 

As another reason to ignore the Case-Shiller Index, note that the Case-Shiller Index only includes home sale data for single-family, detached homes -- sales of condominiums and of multi-unit homes are specifically excluded. In some markets -- Chicago and New York, for example -- sales of these types can represent a large percentage of overall monthly sales.

Lastly, as a third reason to reduce the Case-Shiller Index's significance -- it's "old".

The Case-Shiller Index is published on a 60-day delay and includes sales contracts from even 60 days prior to that. In other words, the data used in this week's Case-Shiller Index dates back to October 2011.

Data from 5 months ago is of little relevance to buyers in Minnesota today. Up-to-date and current information is what matters.

For actionable, real-time housing market data, therefore, look past the Case-Shiller Index. Look to your local real estate agent instead.

Case-Shiller Index Says Detroit And Washington DC Lead The Market

Standard & Poors released its November 2011 Case-Shiller Index this week. The index measures the change in home prices from month-to-month, and year-to-year, in select U.S. cities.

According to the data, for the second straight month, home values fell in 19 of the Case-Shiller Index's 20 tracked markets. In addition, also for the second straight month, Phoenix, Arizona was the lone Case-Shiller-tracked city in which home values rose.

Overall, November's Case-Shiller Index showed a 1 percent decrease in home values between October and November 2011, and a near-4 percent decrease between November 2010 and 2011, putting home values at roughly the same levels as 8 years ago. Don't read too far into it, however.

The Case-Shiller Index, though widely-cited, remains widely-flawed.

As a buyer or seller , relying on the Case-Shiller Index for market research can lead you to improper conclusions. To understand the Case Shiller Index's methodology is to understand why.

First, the Case-Shiller Index draws its data from a very limited geography.

There are more than 3,100 municipalities nationwide. The Case-Shiller Index tracks just 20 of them. And they're not the 20 largest, either. Four of the Top 10 Most Populous U.S. Cities are excluded (Houston, Philadelphia, San Antonio, San Jose) whereas Minneapolis and Tampa are not.

Minneapolis is the 48th largest city in the United States. Tampa is #55.

Next, when Case-Shiller Index gathers its data from its 20 cities, it only includes the home sale data of single-family, detached homes. This means that sales of condominiums and multi-unit homes are specifically excluded from the index. There are some cities -- Chicago and New York, for example -- where condominium sales represent a large percentage of the overall market.

The Case-Shiller Index ignores that.

And, lastly, when the Case-Shiller Index is published, it's published on a 60-day delay. Its data is not "current", therefore, and does little to tell buyers and sellers of Maple Grove and the country what's happening in their home markets right this minute. Instead, the Case-Shiller Index tells us how the housing market looked two months ago.

If you're active in the real estate market, either as a buyer or a seller, the Case-Shiller Index does you little good. For real-time data that actionable, speak to a real estate professional instead. It's where you'll find your best, most reliable and relevant information.

Nationally, Home Prices Off 18.3 Percent From April 2007 Peak

The government confirms what the private-sector Case-Shiller Index reported yesterday. Nationwide, average home values slipped in October.

The Federal Home Finance Agency's Home Price Index shows home values down 0.2% on a monthly, seasonally-adjusted basis. October marks just the second time since April that home values fell month-over-month.

The Case-Shiller Index 20-City Composite showed values down 0.7 percent from September to October.

As a home buyer in Plymouth , it's easy to look at these numbers and think housing markets are down. Ultimately, that may prove true. However, before we take the FHFA's October Home Price Index at face value, we have to consider the report's flaws.

There are three of them -- and they're glaring. As we address them, it becomes clear that the Home Price Index -- like the Case-Shiller Index -- is of little use to everyday buyers and sellers.

First, the FHFA Home Price Index only tracks home values for homes backed by Fannie Mae or Freddie Mac mortgages. This means that homes backed by the FHA, for example, are specifically not computed in the monthly Home Price Index.

In 2007, this was not as big of an issue as it is today. in 2007, the FHA insured just 4 percent of the housing market. Today, the FHA is estimated to have more than one-third of the overall housing market.

This means that one-third of all home sales are excluded from the HPI -- a huge exclusion.

Second, the FHFA Home Price Index excludes new home sales and cash purchases, accounting for home resales backed by mortgages only. New home sales is a growing part of the market, and cash sales topped 29 percent in October 2011.

Third, the Home Price Index is on a 60-day delay. The above report is for homes that closed in October. It's nearly January now. Market momentum is different now. Existing Home Sales and New Home Sales have been rising; homebuilder confidence is up; Housing Starts are showing strength. In addition, the Pending Home Sales Index points to a strong year-end.

The Home Price Index doesn't capture this news. It's reporting on expired market conditions instead.

For local, up-to-the-minute housing market data, skip past the national data. You'll get better, more relevant facts from a local real estate agent.

Since peaking in April 2007, the FHFA's Home Price Index is off 18.3 percent.

Case-Shiller Index : 85% Of Tracked Cities Showed Home Price Improvement In July

Standard & Poors released its monthly Case-Shiller Index this week. The Case-Shiller Index measures home price changes from month-to-month, and year-to-year, in 20 select U.S. cities. It also reports a "national" index; a composite of the values in said cities.

The most recent Case-Shiller Index shows a 0.9% rise in home values from June to July 2011. Home values were higher in 17 of the 20 tracked cities. Only Phoenix and Las Vegas fell. Denver was flat.

Also noteworthy is that, of all of the Case-Shiller cities, Detroit posted the strongest 1-year, home price improvement. As compared to July 2010, home values are higher by 1.2 percent in Detroit. This bests even Washington, D.C. -- long-believed to be the nation's healthiest housing market.

That said, we should be careful of the conclusions we draw from July's Case-Shiller Index -- both on a city-wide level, and on a national level. This is because, as with most "home price trackers", the Case-Shiller Index has flaws in its methodology. 

The first Case-Shiller Index flaw is its limited scope. Although it's purported to be a "nationa"l housing index, the data that comprises the monthly Case-Schiller Index is sourced from just 20 U.S. cities. These 20 cities represent just 0.6% of the more than 3,100 municipalities nationwide.

The second Case Shiller Index flaw is that the sample sets include single-family, detached homes only. iCondominiums, multi-unit homes, and new construction are specifically excluded from the Case-Shiller Index.

In some markets, "excluded" home types outnumber included ones.

And, lastly, the Case-Shiller Index is flawed in that it takes 2 months to gather data and report it. It's nearly October, yet we're still discussing the real estate market as it existing in July. For buyers and sellers in Plymouth , July in ancient history. 

The Case-Shiller Index is useful for tracking long-term trends in housing, but does little to help individuals with their choices to buy or sell a home. For relevant, recent real estate data, talk to a real estate agent in your market. Real estate agents are often the best source for real-time, real estate data.

Home Values Rose In June 2011

Has housing turned the corner for good?

The June 2011 Case-Shiller Index reading posted strong numbers across the board, with each of the index's 20 tracked markets showing home price improvement from May.

Some markets -- Chicago and Minneapolis -- rose as much as 3.2 percent.

The rise in values is nothing about which to get overly excited, however. The Case-Shiller Index is just re-reporting what multiple data sets have already shown about the summer housing market; that it was stronger than the spring market, and that a recovery is underway, but occurring locally, at different rates.

For example, the June 2011 Case-Shiller Index shows the following :

• Denver, Dallas, Washington D.C., and the "California Cities" bottomed in 2009. Each has shown steady improvement since.
• None of the Case-Shiller cities showed negative growth between May and June 2011.
• 12 of Case-Shiller's tracked cities have improved over 3 consecutive months.

In isolation, these statistics appear promising, but it's important to remember that the Case-Shiller Index is a backward-looking data set, focusing on just a portion of the national housing economy.

As an illustration, the Case-Shiller Index's "national report" only includes data from 20 cities nationwide. They're not the 20 biggest cities, either. Smaller metropolitan areas such as Minneapolis (#48) and Tampa (#51) are included.

Larger ones including Houston (#4), Philadelphia (#5) and San Jose (#10) are not.

In addition, the Case-Shiller index fails to track sales of condominiums, multi-unit homes and new construction. In some markets, including Chicago, these excluded home type can represent a large share of the overall market.

The Case-Shiller Index is a fine data set for policy makers and economists. It describes the broader housing market and shows long-term trends. For the individual home buyer in Maple Grove , however, it's much less useful. More than "broad data", you want focused data that's current and relevant.

The best place for data like that is a local real estate agent.

16 of 20 Case-Shiller Cities Show Improvement In May

Standard & Poors released its May 2011 Case-Shiller Index this week. The index measures change in home prices from month-to-month, and year-to-year, in select U.S. cities.

May's Case-Shiller Index showed a 1 percent increase from April 2011. Home values rose in 16 of the Case-Shiller Index's 20 tracked markets. Only Detroit, Las Vegas and Tampa fell. Phoenix was flat.

Don't look too far into the findings, though. Like the FHFA's Home Price Index, the Case-Shiller Index is rife with flaws.

The first flaw of the Case-Shiller Index is its limited geography. Despite being positioned as a national housing index, Case-Schiller Index is sourced from just 20 cities nationwide. There are more than 3,100 municipalities nationwide.

The Case Shiller Index's second flaw is that it ignores all home types excepts for single-family, detached homes in its findings. Condominiums, multi-family homes, and new construction are not included in the Case-Shiller Index.

In some markets, these excluded home types outnumber the included ones.

Furthermore, the Case-Shiller Index is flawed in that it takes 60 days to release.

The Case-Schiller Index reports on a housing market from 2 months ago -- hardly helpful for today's buyers and sellers in Maple Grove , trying to make sense of today's real estate market data. 

When you want real-time housing market data, therefore, look past the Case-Shiller Index and talk to a real estate professional instead. It's where you'll get your best, most relevant information.

Home Values Climb 0.8 Percent In April

Maybe homes in Maple Grove are holding value better than we thought.

Between March and April of this year, home values rose 0.8 percent nationally, according to the Federal Housing Finance Agency's Home Price Index. It's the index's first month-to-month improvement since May of last year.

Values are down 19 percent since peaking 4 years ago.

Private-sector data affirms the government's report. 

Tuesday, the S&P's Case-Shiller Index also showed home values higher by 0.8 percent in April, on a monthly basis. Led by Washington, D.C. and San Francisco, 13 of the Case-Shiller's 20 tracked markets showed improvement in April. 

In March, just 2 markets did.

As a home seller , it's nice to see reports of rising home prices after multiple months of "bad news". However, the data may not be as rosy as it appears to be. National real estate surveys including the Home Price Index and the Case-Shiller Index are flawed for everyday buyers and sellers.

The biggest flaw is "age". Both the Home Price Index and the Case-Shiller Index report on a near 2-month delay.

This week, the calendar turns to July. Yet, we're still discussing housing news from April. The housing market of 60 days ago was very different from the housing market of today. Mortgage rates are different, market drivers are different, and the pool of buyers is likely different, too.

We can't discuss today's housing market with "April" in mind. The data is irrelevant.

Another flaw is that both reports are national in scope. Real estate, by contrast, is local.

When we cite the Home Price Index or the Case-Shiller Index, for example, and say "home values rose 0.8% in April", we're just giving a national average. On the local level, some markets rose by more, some rose by less, and others actually fell.

People buy homes on a specific block of a specific street in a specific neighborhood. Data for homes like that can't be captured in a national survey.

The group that gets the most value from the Home Price Index and Case-Shiller is Wall Street and policy-makers. The indices do a fair job of reporting how housing behaves as a whole, but for individuals concerned with buying and selling homes, the best place to find real-time, accurate data is from a real estate professional.

January 2011 Case-Shiller Index : Weak And Flawed

Standard & Poors released its Case-Shiller Index for the month of January this week. The index is a home valuation tool, measuring the monthly and annual changes in home prices in select cities nationwide.

January's Case-Shiller Index gave a poor showing. As compared to December 2010, home values dropped in 19 of the Case-Shiller Index's 20 tracked markets. Only Washington, D.C. gained. The results were only modestly better on an annual basis, too.

18 of 20 markets worsened in the 12 months ending January 2011.

According to the report, values are down 3.1% from last year, retreating to the same levels from Summer 2003. As a buyer or seller in today's market, though, don't read too much into it. The Case-Shiller Index is far too flawed to be the final word in housing.

The index has 3 main flaws, in fact.

The first flaw is the Case-Shiller Index's lack of breadth. The report is positioned as a national index, but its data is sourced from just 20 cities nationwide.

Putting that number in perspective: the Case-Shiller Index tracks home values from fewer than 1% of the 3,100 U.S. municipalities -- yet still calls the report a "U.S. Average".

A second flaw in the Case-Shiller Index is how it measures home price changes, specifically. Because the index only considers "repeat sales" of the same home in its calculations, and only tracks single-family, detached property, it doesn't capture the "full" U.S. market. Condominiums, multi-family homes, and new construction are ignored in the Case-Shiller Index algorithm. 

In some regions, homes of these excluded types represent a large percentage of the market.

And, lastly, the Case-Shiller Index is flawed because of the amount of time required to release it.

Today, it's almost April and we're talking about closed home resales from January which is really comprised of homes that went under contract in October -- close to 6 months ago. Sales prices from 6 months ago is of little value to today's Minneapolis home buyer, of course.

The Case-Shiller Index can be a helpful tool for economists and policy-makers trying to make sense of the broader housing market, but it tends to fail for individuals like you and me. When you want accurate, real-time housing figures for your local market, talk to your real estate professional instead.

Why You Shouldn't Put Too Much Faith In October's Case-Shiller Index

The Case-Shiller Index posted awful numbers in its most recent reading. Each of the index's 20 tracked markets showed home price deterioration between September's and October's respective report. Some markets fell as much as 2.9 percent.

The drop in values is nothing about which to panic, however. The Case-Shiller Index is just re-reporting what we already knew. It's a common theme with the Case-Shiller Index, actually; a trait traced to the report's methodology.

The Case-Shiller Index is an imperfect housing indicator with 3 inherent flaws.

The first flaw is that the index makes use of a limited data set, tracking values in just 20 cities nationwide. That data set is then projected across the more than 3,100 other municipalities in the United States. The "national figures", therefore, aren't really national.

The second flaw is that, even within the tracked 20 cities, not all home sales are included. The Case-Shiller Index only tracks sales of single-family, detached homes, and within that market subset, it only uses homes that are "repeat sales". This specifically excludes sales of condominiums and multi-family homes, and new construction.

Lastly, Case-Shiller Index's third flaw is its "age". The Case-Shiller Index reports on a 60-day delay, and the values it reports are tied to contracts written even longer ago.  Sales contracts from July and August are responsible for October's closings so when we see the Case-Shiller Index as reported in December, some of the data it's reporting is 5 months old already. That's too old to be relevant.

Looking back at 2010, housing was at its weakest between May and August. Therefore, it's no surprise that the most recent Case-Shiller Index shows significant weakness.  Looking forward, we should expect the report to improve -- especially because of how strong New Home Sales and Existing Home Sales have been since summer.

The Case-Shiller Index is helpful for economists and policy-makers. It's not much good for individual homeowners, however. For accurate, real-time housing data, talk to a real estate professional instead.

September's Case-Shiller Index Reflects A Slowing Housing Market

Standard & Poors released the September Case-Shiller Index Tuesday. The Case-Shiller Index is a home-value tracker. The report shows home prices down 0.7% from August and values fading, in general.

Case-Shiller representatives assessed the findings as "another weak report; weaker than last month", citing deterioration in 18 of 20 tracked markets. Upward pricing momentum from the summer is slowing and values remain 30% off the market's June 2006 peak. It could spell bad news for home sellers in Maple Grove this winter.

That said, the Case-Shiller Index is imperfect; its methodology flawed. The index is not meant for use by individual buyers or sellers -- for 3 reasons.

First, the Case-Shiller Index reports on a 2-month delay. Today is December 1 and we're discussing data from September. In the 8 weeks since, the economy has shifted to a net jobs gainer, and the Federal Reserve has committed to $600 billion in re-investment.  These are major developments that weren't a part of September's housing market, but are relevant today.

Especially because employment is largely believed to be a keystone to housing.

Second, the Case-Shiller sample set is limited to just 20 cities nationwide. This means that most U.S. home sales are specifically not included in the Case-Shiller Index's monthly findings.

And that ties into reason number three -- all real estate is local. No matter what the Case-Shiller Index says about the country, what matters to your local market is what's happening in your local market. Each neighborhood has its own housing economy and that's something that can't be captured by a national report.

Case-Shiller Shows Slowing Growth In Home Prices... Two Months Ago

For the 17th straight month, the Case-Shiller Index reports that home values are rising across the United States. As compared to June, July's prices were up by 4 percent.

However, despite the improvement, July's Case-Shiller Index showed weaker as compared to prior months.

• In June, just 3 cities posted year-to-year reductions in home value. In July, 10 of 20 did.
• In June, just 1 city posted a month-to-month reduction in home value. In July, 7 of 20 did.

As a spokesperson for Case-Shiller said, values "crept forward" in July. But not that it matters -- the Case-Shiller Index is a better tool for economists than it is for homeowners in Minneapolis. This is for 3 reasons.

First, the Case-Shiller Index is on a 60-day delay but real estate sales are based on prices today. A lot can change in 60 days, and it often does. Therefore, the Case-Shiller Index is a better snapshot of the former market than the current one.

Second, the Case-Shiller Index is geographically-limited. It tracks just 20 cities, ignoring some of the largest metropolitan areas in the country including Houston, Philadelphia, and San Jose. Smaller cities like Tampa are included.

And, lastly, national real estate data remains somewhat useless anyway. All real estate is local, rendering citywide statistics too broad to have any real meaning to an individual. To find out what's happening on a neighborhood-by-neighborhood level, you can't look to a national survey -- you have to look to a local real estate agent instead.