Economic Reports, Real Estate

Case-Shiller Index Shows Home Values Still Rising

September 30, 2009 by · Leave a Comment 

For the second month in a row, 18 of the 20 Case-Shiller real estate markets posted higher home values.  It’s the 6th consecutive strong showing for the benchmark private-sector housing index.

Combined with falling home supplies and rising sales figures, this month’s Case-Shiller Index suggests that housing may have bottomed sometime earlier this year.

It’s cause for optimism.

Even Case-Shiller respresentatives seem excited. In its press release, the publishers singled out the index’s winning streak, commenting on the recent “stabilization in national real estate values”.

But, in that statement, we see the Case-Shiller Index’s biggest flaw.  The index imply itself to be a national real estate metric but, in reality, there is no such thing as a national real estate market.

All real estate is local.

The Case-Shiller Index reports home values for 20 U.S. cities.  Each of those cities, however, is comprised of smaller neighborhoods, each with its own character, desirability, and price points.  Case-Shiller attempts to lump it all together — an impossibility.

As an example, New York City posted a nearly 1 percent increase in July but that figure is just a city summary.  The actual market in three distinct neighborhoods — Upper East Side, Chelsea, and Flatbush — vary tremendously.  Not to mention Long Island, too.

Flaws aside, though, Case-Shiller is still important.  It helps to identify broader trends in housing and housing may hold the key to our economic future.

With July’s Case-Shiller Index, we see that the housing market’s recovery is being sustained.

Need more expert advice? Ask the team of Certified Mortgage Planning Specialists at Benchmark Mortgage.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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