A house price index (HPI) measures the price changes of residential housing as a percentage change from some specific start date (which has an HPI of 100). Methodologies commonly used to calculate an HPI are

hedonic regression In economics, hedonic regression, also sometimes called hedonic demand theory, is a revealed preference method for estimating demand or value. It decomposes the item being researched into its constituent characteristics, and obtains estimates of ...

(HR), simple

moving average In statistics, a moving average (rolling average or running average) is a calculation to analyze data points by creating a series of averages of different subsets of the full data set. It is also called a moving mean (MM) or rolling mean and is ...

(SMA), and repeat-sales regression (RSR).

United States

FHFA/OFHEO

The US

Federal Housing Finance Agency The Federal Housing Finance Agency (FHFA) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), ...

(formerly

Office of Federal Housing Enterprise Oversight The Office of Federal Housing Enterprise Oversight (OFHEO) was an agency within the Department of Housing and Urban Development of the United States of America. It was charged with ensuring the capital adequacy and financial safety and soundness o ...

, a.k.a. OFHEO) publishes the HPI index, a broad quarterly measure of the movement of single-family house prices. The HPI is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties in 363 metropolises. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.jumbo mortgages. The HPI was developed in conjunction with OFHEO's (now FHFA) responsibilities as a regulator of Fannie Mae and Freddie Mac. It is used to measure the adequacy of their capital against the value of their assets, which are primarily home mortgages. On July 30, 2008, OFHEO became part of the new Federal Housing Finance Agency (FHFA). Accordingly, the index is now termed the FHFA HPI.

S&P/Case-Shiller indexes

The Case-Shiller index prices are measured monthly and track repeat sales of houses using a modified version of the weighted-repeat sales methodology proposed by Karl Case, Robert Shiller, and Allan Weiss. This means that, to a large extent, it can adjust for the quality of the homes sold, unlike simple averages. The Case-Shiller index has a long lag time as a monthly tracking index. Typically, it takes about 2 months for S&P to publish the results, as opposed to 1 month for most other monthly indices and indicators. In addition, specific indexes are available for specific metropolitan areas and composite indexes for the top 20 and 10 metro areas nationwide.

FNC Residential Price Index

FNC Inc. publishes the Residential Price Index based on data collected from public records blended with real-time appraisals of property and neighborhood attributes. The RPI is the mortgage industry's first hedonic price index for residential properties. The RPI is constructed to gauge price movement among non-distressed home sales and excludes sales of foreclosed properties. The RPI has a lag time of about two months as a monthly tracking index. Specific indices are available for specific metropolitan areas, and composite indices are available for the top 10, 20, 30, and 100 metro areas. The RPI is also available at the zip code level and can be constructed to track price trends for specific characteristics (e.g., ranch-style house, colonial-style house, etc.) since preferences can change over time.

HouseCanary Home Price Index

HouseCanary publishes monthly HPI data at block, block group, zip code, metro division, and metropolitan levels. These indices include forecasts up to 3 years into the future.

United Kingdom

House Price Indices (HPIs) have been produced in the UK since around 1973, initially by mortgage providers and more recently by government bodies. More recently, they have come from property market websites.

Governmental house price indices

** In June 2016, the UK House Price Index (UK HPI) was launched as a collaboration between the

Office for National Statistics The Office for National Statistics (ONS; cy, Swyddfa Ystadegau Gwladol) is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament. Overview The ONS is responsible for t ...

, HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. The index is calculated using land registration data (such as HM Land Registry). The UK HPI release provides comprehensive information on the change in house prices monthly and annually. It also includes analysis by geography, type of buyer, type of dwelling, property status (whether the property is a new build or not), and funding status (cash or mortgage). Several guidance documents are published alongside the release explaining its methodology and the difference between the different sources of official house price statistics. ** From 2012 to 2016, the Office for National Statistics produced a monthly House Price Index (HPI) release, calculated using mortgage financed transactions collected via the Regulated Mortgage Survey by the Council of Mortgage Lenders. These covered the majority of mortgage lenders in the UK. The UK House Price Index replaced this release in June 2016. ** Historically, HM Land Registry also published a separate house price index calculated by Calnea Analytics. It used the HM Land Registry’s data, which consists of the transaction records of all residential property sales in England and Wales. It uses Repeat Sales Regression. The UK House Price Index replaced this release in June 2016. **

DCLG The Department for Levelling Up, Housing and Communities (DLUHC), formerly the Ministry for Housing, Communities and Local Government (MHCLG), is a department of His Majesty's Government responsible for housing, communities, local government ...

House Price Index by the Department of Communities and Local Government used the mix-adjusted method based on weighted averages. The data used in this HPI was mortgage completion data supplied by a few giant lenders. DCLG handed the production of this index to the Office for National Statistics in 2012 ** A House Price Index used to be produced by the Department for the Environment.

Private sector house price indices

* The Nationwide House Price Index and Halifax House Price Index use

Hedonic regression In economics, hedonic regression, also sometimes called hedonic demand theory, is a revealed preference method for estimating demand or value. It decomposes the item being researched into its constituent characteristics, and obtains estimates of ...

(also known as the characteristics based method) using their own datasets compiled from their mortgage lending. These indices have a longer time-series than the Governmental HPIs.

Current UK indices

Ireland

In the

Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland. The capital and largest city is Dublin, on the eastern ...

, the Central Statistics Office publishes a monthl
Residential Property Price Index
Up until 2011,

Permanent TSB Permanent TSB Group Holdings plc, formerly Irish Life and Permanent plc is a provider of personal financial services in Ireland. Irish Life Assurance plc and the Irish Permanent Building Society merged to form the Irish Life and Permanent Group ...

and the

Economic and Social Research Institute The Economic and Social Research Institute is an Irish research institute founded in 1960 to provide evidence-based research used to inform public policy debate and decision-making. The research of the institute focuses on the areas of sustaina ...

published a simila
monthly houseprice index

India

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

, National Housing Bank completely owned by

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible f ...

computes an index termed NHB RESIDEX. The index was formulated based on a pilot study covering 5 cities, Delhi, Mumbai, Kolkata, Bangalore and Bhopal representing the five regions of the country. Actual transactions prices are used to compute an Index reflecting the market trends. 2007 is taken as the base year for the study to be comparable with the WPI and CPI. It now covers Delhi with NCR, Bangalore, Mumbai, Kolkata, Bhopal, Hyderabad, Faridabad, Patna, Ahmedabad, Chennai, Jaipur, Lucknow, Pune, Surat, Kochi, Bhubaneshwar, Guwahati, Ludhiana, Vijayawada, Indore, Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur. The index shows that the prices have doubled in cities like Mumbai, Delhi and Bhopal, but have declined in Hyderabad and Kochi.

Canada

In Canada, the New Housing Price Index is calculated monthly by Statistics Canada. Additionally, a resale house price index is also maintained by the Canadian Real Estate Association, based on reported sale prices submitted by real estate agents, and averaged by region. In December 2008, the private

National Bank In banking, the term national bank carries several meanings: * a bank owned by the state * an ordinary private bank which operates nationally (as opposed to regionally or locally or even internationally) * in the United States, an ordinary p ...

and the information technology firm Teranet began a separate monthl
house price index
based on resale prices of individual single-family houses in selected metropolitan areas, using a methodology similar to the Case-Shiller index and based on actual sale prices taken from government land registry databases. This allows Teranet and the National Bank to track prices without allowing periods of high sales in one city to push up the national average.The shocking truth about the value of your home
''

Maclean's ''Maclean's'', founded in 1905, is a Canadian news magazine reporting on Canadian issues such as politics, pop culture, and current events. Its founder, publisher John Bayne Maclean, established the magazine to provide a uniquely Canadian persp ...

'', 2009-02-23 The National Bank also operates a forward market on Canadian housing prices.

Resources

* Downie, M. L. & Robson G. (2007) Automated Valuation Models: an international perspective. Pp 11 Council of Mortgage Lenders, London, . * Lim, S. & Pavlou M. (2007
An improved national house price index using Land Registry data
RICS research paper series: Volume 7 Number 11. Pp 10–14. London, . Accessed 21 November 2007.
How is the HPI calculated?
(2014) Accessed 9 May 2014

References

{{reflist United States Department of Housing and Urban Development Real estate indices