Comments on: Debate Ensues over Case-Shiller Index http://bostonrealestateobserver.com/case-schiller-index-debate/ Sat, 07 Apr 2012 00:20:55 +0000 hourly 1 By: Jeff Persons http://bostonrealestateobserver.com/case-schiller-index-debate/#comment-639 Jeff Persons Sat, 30 Jan 2010 19:19:23 +0000 http://bostonrealestateobserver.com/?p=2822#comment-639 So why all the references to a number we can't really draw rigorous conclusions from. Case Schiller may be OK for Lexington but not for Boston. Last year Boston sold 4000 condos and only 1000 single family homes. So although its perhaps nice to know that the number of single family homes is doing this or that, the number its not really a number we can use when speaking generally about Boston Home sales. So why all the references to a number we can’t really draw rigorous conclusions from. Case Schiller may be OK for Lexington but not for Boston. Last year Boston sold 4000 condos and only 1000 single family homes. So although its perhaps nice to know that the number of single family homes is doing this or that, the number its not really a number we can use when speaking generally about Boston Home sales.

]]> By: Alan Miegel http://bostonrealestateobserver.com/case-schiller-index-debate/#comment-609 Alan Miegel Mon, 28 Dec 2009 00:22:42 +0000 http://bostonrealestateobserver.com/?p=2822#comment-609 While I agree that leaving condos out of the housing market I still think the Case-Shiller index misses an important metric. If someone buys a house for 500k and puts 50k worth of improvements into it and then sells it for 550k the Case-Shiller index would use that 50k as appreciation when in reality there has been no appreciation at all. While Kevin Ahearn's assertation that condos should be included I wonder what he has to say about new units. Usually these are pumped in at the high end and actually very much inflate what would normally be year over year numbers. My point is not that the Case-Shiller index is wrong - rather, it's mearly one more way to gauge what the market has done. There are many ways to measure the market and I think Case-Shiller when combined with measures like the market velocity (number of months to clear the existing inventory), etc. I do agree that most real estate agents (even the good ones) always think the market is better than it is. If your income was based on it being good then you'd also be one to overly optimistic. While I agree that leaving condos out of the housing market I still think the Case-Shiller index misses an important metric. If someone buys a house for 500k and puts 50k worth of improvements into it and then sells it for 550k the Case-Shiller index would use that 50k as appreciation when in reality there has been no appreciation at all.

While Kevin Ahearn’s assertation that condos should be included I wonder what he has to say about new units. Usually these are pumped in at the high end and actually very much inflate what would normally be year over year numbers.

My point is not that the Case-Shiller index is wrong – rather, it’s mearly one more way to gauge what the market has done. There are many ways to measure the market and I think Case-Shiller when combined with measures like the market velocity (number of months to clear the existing inventory), etc.

I do agree that most real estate agents (even the good ones) always think the market is better than it is. If your income was based on it being good then you’d also be one to overly optimistic.

]]>