One of the most widely watched measures of home price appreciation is the S&P CoreLogic Case-Shiller Home Price Index. For years this has been viewed as the “Gold Standard” for measuring home price appreciation. This Index uses same house sales over time and covers 20 metro areas throughout the US. Most Real Estate professionals recognize that other measures such as changes in the median sales price over time have their weaknesses. Primary among these weaknesses is that the sample mix can change over time and that can affect the median sales price. In other words, is the median sales price changing due to market demands or simply changes in the sample mix? The Case-Shiller Home Price Index has its place but there is a “New Kid on the Block” – it is from our own Real Estate Center at Texas A&M University. Using same house sells over time, The Real Estate Center just launched home price indexes for several metro areas in Texas – and most importantly, it provides indexes by price tier for some of the larger Texas markets. In doing so, we are able to compare changes in the lower tier, mid-tier, and upper tier across time. Take a look. Using 2005 as the base year at 100, a house in the lower tier would have appreciated to 145 in 3Q 2018 (a 45% increase) whereas a house in the mid-tier would have gone to 161 and a house in the lower tier to a whopping 171. With this new index, we can better understand the various sub-markets in our area.
It is an exciting time to be in the real estate valuation arena! My first love is working as an expert witness and offering litigation support in cases that match up with my conclusions. But I have to say, also, that I truly get great satisfaction in working with Glenn and the staff at Propertytax.io as we help the public understand property tax issues and empower them to appeal their assessments with confidence!
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