Now-a-days it seems that everyone from homeowners to buyers, sellers, and investors alike have been wondering what’s happening to home prices. Are they falling, rising, or stabilizing?
But consumers may be confused over sometimes contradictory reports. For example, why does NAR’s (National Association of REALTORS®) monthly median home price index tend to be higher than recent prices reported in the Case-Shiller index that is so widely publicized in the media?
The details are in the data. Case-Shiller tracks 20 metro areas; many of these are in California and Florida. It also gives greater weight to more expensive homes – a price decrease in a $1 million home is 10 times greater than a decrease in a $100,00home.
NAR metro price series tracks 150 metro areas, and all home values are treated equally.
A Price perspective
The NAR’s most recent data showed that two-thirds of the metropolitan markets have seen
positive growth in home prices, but based on a recent Case-Shiller report that 17 markets had seen price declines, some headlines suggested that home prices in a majority of markets had decreased. As I have spoken with appraisers to find out what they think about the health of our local real estate market, and evaluate whether those perceptions are in line with current conditions it seems that we are still living in a stable market in the Greater Athens area.
Sure, there are distressed sales in some areas of our community where overbuilding and too much inventory are located, but on the whole we have seen some slight appreciation in the past year. Not many areas can say that. Keep in mind when you listen to the national media that real estate is at its core “local.”
