Wednesday, July 27, 2011

Rumor: NAR Considering Introducing Repeat Sales Index

by Bill McBride on 7/27/2011 04:51:00 PM

From economist Tom Lawler:

[T]he rumor mill has it that the NAR is considering developing a “repeat transactions” price index, presumably based on property level data from various MLS across the country. NAR analysts have noted that the impact of the “mix of homes” on its median sales price had become even more dramatic over the past few years than was the case in the past, and some apparently have become resigned to the fact that the median is “no longer the message” when in comes to tracking home price trends.
The median price is useful for tracking prices when the mix of homes sold is stable. But the mix hasn't been stable for some time, and now most people follow Case-Shiller, CoreLogic and a few other price indexes.