San Diego Housing Market News and Analysis
The Year in Home Prices, According to Case-Shiller
Submitted by Rich Toscano on March 5, 2013 - 5:47pm
Let's have a look at how the year 2012 treated house prices, as measured by the Case-Shiller index.
This home price indicator lags by a couple months, but it offers a couple advantages. First, it uses repeat sales of the same homes, so it is more accurate than simply looking at a median price, which could be distorted by a change in the quality of homes sold.
Second, it breaks the sold homes into three price tiers, which allows us to separately analyze price changes for low-, medium- and high-priced homes. (The tier cutoffs are determined by simply splitting the sold homes into three equal-sized groups — the most expensive one-third of homes sold goes into the high-priced tier, etc.).
Here is the Case-Shiller index, for the three tiers as well as the combined index in black, starting at the early-2009 price trough:
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