What are S&P/Case-Shiller Home Price Indices?

The S&P/Case-Shiller Home Price Indices are a key measure of US house prices. Here we take a look at the S&P/Case-Shiller Home Price Indices definition…

The S&P/Case-Shiller Home Price Indices are a group of indices that measure changes in US residential property prices. They are a leading barometer of the US housing market and economic health. 

Different types of S&P/Case-Shiller Home Price Indices explained

What do the S&P/Case-Shiller Home Price Indices mean? The group consists of three indices:

• S&P CoreLogic Case-Shiller US National Home Price Index

• S&P CoreLogic Case-Shiller 10-City Composite Home Price NSA Index

• S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index

The first national home price index takes into account the value of single-family housing in the US. Calculated on a monthly basis, the index is a composite of single-family home price indices for the nine US Census divisions. 

This national index is broadly considered to be a gauge of the US housing market and the US economy.

S&P CoreLogic Case-Shiller city indices measure the average change in home prices for a particular geographic market. 

S&P CoreLogic Case-Shiller 10-City and S&P CoreLogic Case-Shiller 20-City Indices are calculated on a monthly basis. 

The S&P CoreLogic Case-Shiller 10-City Index measures the change in prices of residential real estate in 10 metropolitan areas in the US, including Boston, Los Angeles, Miami, New York, Chicago, Denver, San Francisco, Washington D.C., Las Vegas and San Diego. 

The S&P CoreLogic Case-Shiller 20-City measures the prices of residential real estate in 20 major metropolitan areas – those in the 10-City index plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa. 

How are the S&P/Case-Shiller Home Price Indices used?

One example of S&P/Case-Shiller Home Price Indices use is in financial markets, where it forms the basis for Chicago Mercantile Exchange (CME) real estate futures and options. 

The CME is an exchange that trades options and futures contracts. These can be derived from any sector of the economy, such as real estate, agriculture, energy, metals, interest rates, equity indices and foreign exchange.