House price index

House price index

A House Price Index (HPI) measures the price of residential housing.

US

OFHEO

The US Office of Federal Housing Enterprise Oversight (OFHEO) publishes the OFHEO HPI, a quarterly broad measure of the movement of single-family house prices.

The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

The HPI was developed in conjunction with OFHEO's responsibilities as a regulator of Fannie Mae and Freddie Mac. It is used to measure the adequacy of their capital against the value of their assets, which are primarily home mortgages.

&P/Case-Shiller Indices

The Case-Shiller index prices are measured monthly and tracks repeat sales of houses using a modified version of the weighted-repeat sales methodology proposed by Karl Case and Robert Shiller. This means that, to a large extent, it is able to adjust for the quality of the homes sold, unlike simple averages.

IAS360

The IAS360 House Price Index provides a monthly view of housing price trends in the US based on neighborhood level data (market trends at a county level). IAS360 is a comprehensive housing index tracking monthly change in the median sales price of detached single-family residences in more than 15,000 “neighborhoods” across the US. This data is then rolled up to report on the changes in 360 counties, nine census divisions, four regions, and the nation overall. The timeliness of the data, which is based on all arms-length transactions occurring in underlying neighborhoodsFact|date=June 2008, makes the IAS360 the leading indicator for housing price trends in the USFact|date=June 2008.

UK

House Price Indices (HPIs) have been produced in the UK since around 1973 and have traditionally been generated by governmental bodies as part of official statistics and mortgage lenders as part of their marketing and public relations efforts. In more recent times, property market websites have begun to produce them. There are two dominant methods of indexation, the Hedonic regression (also known as the characteristic based) Method and Repeat Sales Regression.

A number of house price indices exist in the UK, which are calculated by a variety of different players in the UK Property Market.

Governmental house price indices:

The Land Registry House Price Index (calculated on behalf of HM Land Registry by Calnea Analytics) uses Land Registry’s own data, which consists of the transaction records of all residential property sales in England and Wales. The number of monthly transactions is approximately 100,000 per month. It is the only index in the UK to use the Repeat Sales Regression (RSR) technique.

The DCLG index (formerly ODPM) uses the mix-adjusted method, which is based on weighted averages. The data used in this HPI is mortgage completion data supplied by a few large lenders.

Private sector house price indices

The Nationwide House Price Index and Halifax House Price Index, are calculated by the respective Banks and Building Societies. They use Hedonic regression (also known as the characteristics based method), to establish changes in the property market, using their own internal datasets compiled from their mortgage lending.

The Nationwide and Halifax have a longer time-series than the Governmental HPIs.

Current UK indices

Ireland

In the Republic of Ireland, Permanent TSB (a large mortgage lender) and the Economic and Social Research Institute (a think-tank) have published a [http://www.esri.ie/irish_economy/permanent_tsbesri_house_p/ monthly houseprice index] since January 1996.

Resources:

Downie, M. L. & Robson G. (2007) Automated Valuation Models: an international perspective. Pp 11 Council of Mortgage Lenders, London, ISBN: 1-905257-12-0.

Lim, S. & Pavlou M. (2007) An improved national house price index using Land Registry data. RICS research paper series: Volume 7 Number 11. Pp 10-14. London, ISBN: 978-1-84219-347-1. http://www.rics.org/Knowledgezone/Researchandreports/Land+Registrty+paper.htm Accessed 21 November 2007.

How is the HPI calculated? (2007) http://www.landreg.gov.uk/kb/Default.asp?ToDo=view&catId=32&questId=339 Accessed 29 November 2007

External links

* [http://www.iasreo.com/ias360.html IAS360 House Price Index]
* [http://www.ofheo.gov/HPI.aspx OFHEO House Price Index]
* [http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/2,3,4,0,0,0,0,0,0,0,0,0,0,0,0,0.html S&P/Case-Shiller Home Price Indices]

* [http://www.landreg.gov.uk/ Land Registry]
* [http://www.communities.gov.uk/ DCLG]
* [http://www.calnea.com/about.htm Calnea Analytics]
* [http://sdhpi.blogspot.com San Diego home price index]
* [http://www.home.co.uk/guides/house_prices_indices/toc.htm Comparison of UK House Price Indices]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • House Price Index - HPI — A broad measure of the movement of single family house prices in the U.S. Apart from serving as an indicator of house price trends, the House Price Index (HPI) provides an analytical tool for estimating changes in the rates of mortgage defaults,… …   Investment dictionary

  • FHFA House Price Index — seit 2000 Der FHFA House Price Index (früher OFHEO House Price Index), von der Federal Housing Finance Agency (FHFA) berechnet, spiegelt die Preisentwicklung am US amerikanischen Immobilienmarkt wider. Inhaltsverzeichnis …   Deutsch Wikipedia

  • IAS360 House Price Index — The IAS360 House Price Index summarizes median house price trends, and the appreciation or depreciation in house prices, monthly in 360 counties, nine census divisions, and four regions, in the United States. The index analyzes house price trends …   Wikipedia

  • Halifax House Price Index — A monthly house price index, published by the Halifax and Bank of Scotland plc, which is based on a sample of housing data for the UK. It is used by government departments, the media and businesses as an authoritative indicator of house price… …   Law dictionary

  • price index — UK US noun [C] ► ECONOMICS a measurement of the changes in the price of goods and services over a period of time: »The latest UK house price index was released on Tuesday. → See also CONSUMER PRICE INDEX(Cf. ↑consumer price index), COST OF LIVING …   Financial and business terms

  • Consumer price index — CPI redirects here. For other uses, see CPI (disambiguation). A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor …   Wikipedia

  • Consumer price index by country — Contents 1 Argentina 2 Australia 3 Belgium 4 Canada …   Wikipedia

  • Consumer price index (Belgium) — The Belgian Consumer Price Index (commonly referred to as the Index) is a list of prices of goods and services, kept by the Belgian Federal Government Service Economy. The Index is updated on a monthly basis, and reflects the evolution in the… …   Wikipedia

  • index — A specialized average. Stock indexes may be calculated by establishing a base against which the current value of the stocks, commodities, bonds, etc., will change; for example, the S&P 500 index uses the 1941 1943 market value of the 500 stocks… …   Financial and business terms

  • price — A fixed value of something. Prices are usually expressed in monetary terms. In a free market, prices are set as a result of the interaction of supply and demand in a market; when demand for a product increases and supply remains constant, the… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”