We have several Home Price Index’s to watch, all tracking the same thing. Case Shiller Index is my preferred one to watch, mainly because of S&P Moody’s reputation for accuracy.
The FHFA (Federal Housing Financing Agency) released their Home Price Index yesterday for Minnesota. Seems in line with Case Shiller’s Index. The big difference with this one is that Q1 1980 = 100 for the Index.
FHFA MN Home Price Index 8-24-2011
This is a great visualization from calculatedrisk blog. The commercial real estate market is tracking about 18 months behind residential. Commercial Property Price Index vs. Case Shiller. So what my question is: In order for the Residential Market to recover, we need jobs. The primary purpose of Commercial property is commerce aka Jobs. So which market will recover first? Residential or Commercial?? Thoughts?
Also another question comes to mind – had we not interfered with the residential market (government intervention) would the Case Shiller index bottomed out like the CPPI? Was it really worth it?
CPPI vs. Case Shiller (calculatedrisk blog)