The price of a home is generally a price comparison of like properties in a similar area, based on either a multiple of rent/income or comparison of cost square footage.
We are all familiar with the MLS, the traditional vehicle for listings. However, the internet has been able to offer us many more sources of price comparison.
Two other important sources for the health of the market and for price comparisons are:
1. Case-Schiller Index: A monthly index which measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan region across the United States . The methodology captures repeat sales in homes. This shows up as price change up or down.
2. HPI home price index: Compiled by the OFHEO (Office of Federal Housing Enterprise Oversight). The HPI is a broad measure of the movement of single-family house prices which measures average price changes in repeat sales or refinancing on the same properties. The HPI is a quarterly report.
But, if you wanted to get a sense of price movement to buy sell or refi then a daily index, giving you absolutely current price information then you should look here:
3. RPX: The Radar Logic home page has a good explanation of how the daily numbers are created. The intended use is to try and establish an index that can trade in the stock market. However, the index is a good indicator for buyers and sellers as well. The Residential Price Index tracks 25 MSA's, or Metropolitan Statistical Areas from around the country. Individual index numbers are available for each, as well as a U.S. Composite number for the whole country. The index uses prices per square foot for its calculations, instead of gross sales prices of homes. A chart of price change in 25 major cities is produced daily.
Real Estate Investment
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