In this article, you will be able to read more about real estate price index and more particularly about house price index or HPI. It will help you become better at understanding some common real estate problems, and it will help you with your real estate issues. Understanding real estate terminology will also make it easier for you to deal with your real estate situations.
Today we will be investigating into further detail house price indexes in the US which will help you find out more about available real estate. While there are advantages and disadvantages to each of these indexes, they are usually a very effective and beneficial way of making sure what kind of real estate is offered on the real estate market.
What Is House Price Index?
House price Index or HPI is the measure of the movements of single-family house prices on a quarterly level. In the US the estimations are published by Federal Housing Finance Agency and its measures average price changes in 363 metropolises. The measurements have been made since January 1975.
FNC Residential Price Index
We should also mention FNC Residential Price Index which provides you with similar information regarding real estate. The Residential Price Index is in fact based on collected data from public records, but at the same time it is also blended with data from real-time property and neighborhood attributes. You should also have in mind that the data represented by RPI usually lags for about two months. On the other hand, RPI is also available for specific real estate such as ranch-style houses for colonial style houses. You can also do your research according to Metropolitan areas or ZIP Code.
This real estate home price index was devised by monitoring modified version of repeat sales methodology, which was constructed by Karl Case and Robert Shiller as well as Allan Weiss. Unlike simple averages, it can give you a better understanding of the quality of the homes which have been sold, but it is not without its drawbacks. Namely, this tracking index has a long lag time, so you should take that into consideration. It also offers specific metropolitan areas indexes as well as indexes nationwide. This index might be rather beneficial for some people if they are prepared to invest time and money into researching their future real estate.