OFHEO More Nationally Representative than Case/Shiller Index

Professor Nunes sent me this chart comparing the Case-Shiller national housing price index with the OFHEO index for the Pacific region only. The close correlation between the two is consistent with the hypothesis of Rebecca Wilder that the "national" Case-Shiller index does not represent well the nation as a whole.

Click to enlarge:

Comments

[Davewmart:]

Unless you can show that Case-Shiller does not correlate with other regional indexes, it's coincidence with the regional graph for the Pacific region shows nothing, as it may simply be that trends there have been close to the national average.

Jul 08 09:09 PM

[Cold Reality:]

Having a hard time seeing a major divergence in the data here.

Jul 09 12:50 AM

[Jimmy K:]

Casey, move on to other topics... we all know Housing bottomed in April!!!

Jul 09 07:35 AM

[Accuriz:]

Housing is showing stability and a slight correction. What Casey is stating is very important. Case Shiller is not the be all and end all. Those who take the time to obtain and analyze more data are getting different results than Case Shiller, as shown by Rebecca Wilder.

Perhaps the markets are being influenced by data that is not reflective of actual markets. We cannot keep generalizing the real estate market. Just think about it, how many decisions would be different if individuals realized the market declined 20% versus 30% in several hard pressed markets.

Jul 09 10:26 AM