Economic Reports, Market Insight, Real Estate

Are Home Values Up or Are Home Values Down?

January 29, 2010 by · 2 Comments 

Reporting on a two-month lag, the government said home values rose 0.7 percent in November. 

National home prices are at their highest point since February 2009.

But before we look too much into the FHFA’s Home Price Index, it’s important that we’re cognizant of its shortcomings; the most important of which is its lack of real-time reporting.

According to the National Association of Realtors™, 80% of purchases close within 60 days. As a result, because of its two-month delay, the Home Price Index report actually trails today’s market data by an entire sales cycle.

This is one reason why home values appear to be rising in Northwest Indiana even while new data shows that both Existing Home Sales and New Home Sales fell flat last month.  The home valuation report is using data from November; the sales reports are using data from December.

The Home Price Index is a trailing indicator and next month, as the Spring Market gets underway, the government will be reporting data from the holidays.

The same is true for the Case-Shiller Index. It, too, operates on a 2-month lag.

All of that said, however, long-term trends do matter in housing and the Home Price Index has shown consistent improvement over the last 10 months.  In many communities like Chesterton, Crown Point, Scherereville and Valparaiso, home sales are up, home supplies are down, and values have increased.  This trend should continue into the early part of 2010, at least.

If you’re wondering whether now is a good time to buy a home in Chesterton, Crown Point, Highland, Munster, Portage, Saint John, Schererville or Valparaiso, consider low prices, cheap mortgages and an available tax credit as three good incentives.  By May, none of them will likely be available in Northwest Indiana.

Contact Benchmark Mortgage in Northwest Indiana to Qualify for Your FREE FHA Home Loan Approval Today!

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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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2 Responses to “Are Home Values Up or Are Home Values Down?”
  1. James,

    Interesting article. Down south where I live, it looks like the Louisville real estate market is either up, or down, depending upon which set of stats you look at, and what you compare it to. For instance, the asking price of homes is rising across much of the city, which seems like good news. But the sales price is down across the board. Unless you compare the most recent sales numbers to the worst sales numbers on record, last years. So if you are an optimist, you say “At least we aren’t as bad off as last year”, and if you’re a pessimist, you say “Man, this year is just about as bad as last year!”


  2. Greg, I think we’re all right there at that tension point between a recovery and a stagnation or plateau. For now I’m glad to see rates holding near 5% (even below some days) while inventories drop. I was worried that Obamacare and other Federal spending/borrowing would push rates up real fast this year.

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