SOURCE: U.S. Federal Housing Finance Agency, All-Transactions House Price Index for Riverside-San Bernardino-Ontario, CA (MSA) [ATNHPIUS40140Q], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/ATNHPIUS40140Q, November 30, 2018.
What is the Case-Shiller Home Price Index?
Each index measures changes in the prices of single-family, detached residences (also known as houses) using the repeat-sales method, which compares the sale prices of the same properties over time. The types of sales tracked by the Case-Shiller indexes are called arms-length sale transactions. These are transactions where the home was sold at market value and the sale price data can be used to get an accurate snapshot of the housing market. A transaction where a mother sold her home to her son for a favorable, below-market price would not be included in any Case-Shiller index because it doesn’t accurately reflect overall housing market activity. Foreclosure sales are included in the indexes because a sale between a bank and an individual is considered both arms-length and a repeat sale.