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House price indexes: methodology and revisions

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  • Joseph M. Silverstein

Abstract

Accurate measurements of house prices are important for a number of reasons. Housing is usually the most important investment a household ever makes, and home equity is typically the largest component of household wealth. In addition, housing is an important source of collateral for household borrowing, and, as we have seen, its value can be subject to considerable fluctuation. Also, research has shown that having a mortgage that is larger than the value of the underlying house is associated with an elevated risk of default.

Suggested Citation

  • Joseph M. Silverstein, 2014. "House price indexes: methodology and revisions," Research Rap Special Report, Federal Reserve Bank of Philadelphia, issue Jun.
    • Handle: RePEc:fip:fedprr:00013
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    References listed on IDEAS

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    1. John M. Clapp & Carmelo Giaccotto, 1999. "Revisions in Repeat‐Sales Price Indexes: Here Today, Gone Tomorrow?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(1), pages 79-104, March.
    2. Robert J. Shiller, 1991. "Arithmetic Repeat Sales Price Estimators," Cowles Foundation Discussion Papers 971, Cowles Foundation for Research in Economics, Yale University.
    3. Steven C. Bourassa & Eva Cantoni & Martin Hoesli, 2013. "Robust Repeat Sales Indexes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(3), pages 517-541, September.
    4. Eric Clapham & Peter Englund & John M. Quigley & Christian L. Redfearn, 2006. "Revisiting the Past and Settling the Score: Index Revision for House Price Derivatives," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 34(2), pages 275-302, June.
    5. Ronel Elul & Joseph M. Silverstein & Tom Stark, 2014. "Understanding house price index revisions," Working Papers 14-38, Federal Reserve Bank of Philadelphia.
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    Cited by:

    1. Jéssica Fernanda Castaño Lavado. & Miguel Ángel Morales Mosquera, 2015. "Revisión Metodológica de Índices de Precios de la Vivienda," Temas de Estabilidad Financiera 81, Banco de la Republica de Colombia.
    2. Claudio Borio & Øyvind Eitrheim & Marc Flandreau & Clemens Jobst & Jan F Qvigstad & Ryland Thomas, 2022. "Historical monetary and financial statistics for policymakers: towards a unified framework," BIS Papers, Bank for International Settlements, number 127.
    3. Yuming Li & Jing Yang, 2020. "Momentum Strategies with Home Price Indices and Stocks," International Real Estate Review, Global Social Science Institute, vol. 23(2), pages 861-892.
    4. Jed Armstrong & Ashley Dunstan & Tobias Irrcher, 2017. "Evaluating alternative monthly house price measures for New Zealand," Reserve Bank of New Zealand Analytical Notes series AN2017/02, Reserve Bank of New Zealand.
    5. Yuming Li & Jing Yang, 2020. "Momentum Strategies with Home Price Indices and Stocks," International Real Estate Review, Global Social Science Institute, vol. 23(2), pages 235-266.

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    Keywords

    House price index;

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