Home price decline not as severe as once reported
Case-Shiller revises data
Now that the economy has had seven years to digest the financial crisis, the real impact of the recession might not be as bad as it appeared, according to an article in Bloomberg.
The article explained that property values nationally only fell 26% from the February 2007 peak to the December 2011 trough, not 34% as previously reported, revised data shows.
Meanwhile, the index will now be issued monthly rather than quarterly.
The change is the result of CoreLogic’s $6 million purchase of the S&P/Case-Shiller index from technology company Fiserv Inc. in March 2013. Case-Shiller has spent more than a year retrofitting its model with CoreLogic’s bigger, higher-quality data set, leading to a change in how the index looks.
The index has always measured repeat, arm’s-length transactions. Transfers of ownership such as bank repossessions are thrown out and the value of those foreclosed properties are captured later, when they’re sold. That ensures that sales of distressed properties aren’t counted twice, Case-Shiller principal economist David Stiff said.