NEW! CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Tuesday, April 28, 2009

Tiered House Price Indices

by Calculated Risk on 4/28/2009 05:03:00 PM

On more Case-Shiller graph ...

The following graph is based on the Case-Shiller Tiered Price Indices for San Francisco. Case-Shiller has tiered pricing data for all 20 cities in the Composite 20 index.

Case-Shiller Tier House Prices Click on graph for larger image in new window.

This shows that prices increased faster for lower priced homes than higher priced homes. And prices have also fallen faster too.

It now appears mid-to-high priced homes are overpriced compared to lower priced homes - although prices will probably continue to fall for all three tiers. Because of foreclosure activity, I expect the lower priced areas to bottom (especially in real terms) before the higher priced areas.

For those interested, Case-Shiller also has condo price indices for five cities: Los Angeles, San Francisco, Chicago, Boston and New York.