Friday, July 3, 2009

A New Comparative Analysis of Housing Price Indices

I applaud Rebecca Wilder for doing some hard work. I have not yet studied the details, but she seems to be saying that some of the Western cities are getting too much weight in the Case-Shiller index, and as a result the OFHEO index is giving a more accurate picture.

That agrees with my rough impression. If we are right, housing prices suggest that the housing market has bottomed, although construction spending is not yet supporting that conclusion.

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