netreality

Is Case-Shiller the Best Measure of U.S. Housing Prices?

And also the fact that properties that sold at least twice over the given time period is also a filtered pool. Many many houses turn over only once a decade or less and would be excluded. These are usually the ones in the more desireable neighborhoods, better school districts. Parents don't want to move and disrupt children's schools. Properties in good school districts hold their values much better than the opposite. Case in point: Palo Alto, CA. Very low inventory, prices still rising today! However East Palo Alto, gang ridden, crappy schools, tons of turnover, foreclosures. 1 mile and a world apart, but represented MUCH higher in volume in the Case-Shiller San Francisco Bay Area index.