So, since Case Shiller is coming up this week, I’m wondering does anyone know if Case-Shiller takes into account home improvements?
For instance if I buy a crummy little house in bird rock, for a million, tear it down and build a much bigger house and sell it for two million, will Case Shiller report a 100% price increase on this house? Or will Case-Shiller exclude this house because it is no longer the same thing?
If Case Shiller does not adjust for improvements, then it is going to overestimate the price increase, and under estimate the price decreases. If they do adjust for improvements, how do they do that as there would be many different cases and scenarios that would need to be adjusted for.
