Here’s the story on the Homedex. It was started by a CSU San Marcos Economics Professor as a project with his students. I read the early reports and their interpretations were utterly laughable. They were made by someone in an aivory tower looking at data who had no clue whatsoever about the functions of the housing markets, how homes are valued, how much it costs to build etc.
I sent him an email ripping him apart and explaining the numerous flaws in what they were doing. Never hear back from him, but they did change the reports in line with what I told them. Somewhere along the line I think they got the board of realtors to give them some sort of subsidy to continue the reports. Bottomline, these were not reports created for the industry but rather sold to the industry. They are done by a college professor and his students who dont really have any true experience in the markets they are analyzing.
