Case-Shiller : Home Values “Creeping Higher” After A Strong Spring

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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.

National Real Estate Data Is Flawed

However, 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 Cincinnati. 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 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.

Cincinnati, Dayton and Columbus are excluded, too.

And, lastly, national real estate data is somewhat useless. All real estate is local, rendering citywide statistics too broad to have any real meaning to people like me and you.  Data like the Case-Shiller Index is more relevant to economists and policy-makers. Homeowners need more granular figures — like block-by-block.

Find Better Real Estate Stats Online

The Case-Shiller Index isn’t all bad. After all, it’s “good” data.  It’s just delayed and general.  That’s fine if you’re an economist or policy-maker in need of clues on housing, but it ain’t no good if you’re trying to make a buy or sell decision.

For that, you need your real estate stats to be more better.

And then, when you’ve found a home and it’s time for your mortgage, give me a call or click here to send me an email.

(Post adapted from Bring the Blog, a blogging service for real estate and mortgage pros)

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.