Earlier this year, I received an email from my alma mater saying that Karl “Chip” Case was retiring after 30-plus years of teaching economics at Wellesley. Although I never took one of his classes (which I now regret), I know that he was immensely popular and beloved by his students, and will be greatly missed. One of his enduring legacies is the Case-Shiller Index (technically called the S&P/Case-Shiller Home Price Indices), which he developed with Yale economist Robert Shiller and Shiller’s graduate student Allan Weiss.
The indices are calculated based on repeat sales of single-family homes. Measuring housing prices based on median sales shows the values of different homes selling at a particular point in time, rather than tracking the sales price of the same house over time, which Case believed was a more accurate way of measuring appreciation in housing values.
The indices (now generated and published under an agreement between S&P and Fiserv) are published on the last Tuesday of the month, and have become a media staple during the downturn. The most recent report, published May 25 for data through March 2010, showed that the US National Home Price Index fell 3.2%, but is above the year-ago level. Average home prices are now at levels similar to those in the spring of 2003. Eighteen of the twenty metro areas represented in the 20-city composite showed improvements in annual returns, with the exceptions being Atlanta and Charlotte. Las Vegas was the only city to still post a double-digit decline at the end of March.
Research and Trading Associate