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Altos Research Real-Time Housing Market Indicators Leading  the S&P/Case-Shiller Home Price Index
Leading the Case-Shiller HPI S&P/Case-Shiller HPI is reported with a 60-day lag, and subject to revision Altos Research real-time housing indicators are compared to: Calendar time event Reported time event Leading indicators provide 2-8 month forecast of trend and magnitude changes in the CS HPI
Supply & Demand Indicators Median Price Asking price of available on-market/active listings. Positively correlated to CS with 3-4 month lead time. Price of New Listings Asking price of each week’s new market supply.  Positively correlated with 4-5 month lead time. Price of Listings Absorbed Proxy for sold prices. Properties exit the market, then  typically close 60-120 days later. Percent Price Decreased Percentage of active sellers who have take at least one price reduction in most recent 90-day period Negatively correlated with 4-8 month lead time. Inventory Total count of active listings Negatively correlated with 2-6 month lead time.
Additional Leading Indicators Days-on-market (mean & median) Time-on-market to determine future price forecasting period Market Action Index Market absorption rate Percent Relisted Seller psychology indicator.  Magnitude Price Decrease Measures amount of seller price reductions Year-on-Year Measures (Price, DOM, Inventory)
Today’s on-market prices lead tomorrow’s transaction prices
Today’s price reduction means lower transaction prices tomorrow… Increasing number of price reductions indicate market weakness ahead - leads to lower future prices.
…While new sellers enter the market to influence future prices
Supply levels affect prices
Seattle (SEXR)
Seattle Price Reductions
Chicago (CHXR)
Chicago Price Reductions
Chicago Inventory
Los Angeles (LXXR)
Contact Altos Research Scott Sambucci, VP Data Analytics O: (415) 931-7942 M: (415) 596-0804 E: scott@altosresearch.com B: http://blog.altosresearch.com W: www.altosresearch.com

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Leading the Case-Shiller HPI with Altos Research Housing Market Indicators

  • 1. Altos Research Real-Time Housing Market Indicators Leading the S&P/Case-Shiller Home Price Index
  • 2. Leading the Case-Shiller HPI S&P/Case-Shiller HPI is reported with a 60-day lag, and subject to revision Altos Research real-time housing indicators are compared to: Calendar time event Reported time event Leading indicators provide 2-8 month forecast of trend and magnitude changes in the CS HPI
  • 3. Supply & Demand Indicators Median Price Asking price of available on-market/active listings. Positively correlated to CS with 3-4 month lead time. Price of New Listings Asking price of each week’s new market supply. Positively correlated with 4-5 month lead time. Price of Listings Absorbed Proxy for sold prices. Properties exit the market, then typically close 60-120 days later. Percent Price Decreased Percentage of active sellers who have take at least one price reduction in most recent 90-day period Negatively correlated with 4-8 month lead time. Inventory Total count of active listings Negatively correlated with 2-6 month lead time.
  • 4. Additional Leading Indicators Days-on-market (mean & median) Time-on-market to determine future price forecasting period Market Action Index Market absorption rate Percent Relisted Seller psychology indicator. Magnitude Price Decrease Measures amount of seller price reductions Year-on-Year Measures (Price, DOM, Inventory)
  • 5. Today’s on-market prices lead tomorrow’s transaction prices
  • 6. Today’s price reduction means lower transaction prices tomorrow… Increasing number of price reductions indicate market weakness ahead - leads to lower future prices.
  • 7. …While new sellers enter the market to influence future prices
  • 15. Contact Altos Research Scott Sambucci, VP Data Analytics O: (415) 931-7942 M: (415) 596-0804 E: scott@altosresearch.com B: http://blog.altosresearch.com W: www.altosresearch.com

Notas do Editor

  1. Turns out that the residential real estate market is extremely efficient – slow compared to financial markets – but efficient. Transactions are generally grouped by week or month, instead of minute-by-minute. Sellers change the asking prices based on buyer behavior. A seller that sees little or no activity on their listed home will usually respond with a price reduction within a 1-3 month period. Alternately, homes price closer to the buyer strike price will move rapidly off of the market