Case–Shiller index
Encyclopedia
The Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...

 Case–Shiller Home Price Indices are constant-quality house price indices
House price index
-FHFA/OFHEO:The US Federal Housing Finance Agency publishes the HPI inx, a quarterly broad measure of the movement of single-family house prices....

 for the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. There are multiple Case–Shiller home price indices: A national home price index, a 20-city composite index, a 10-city composite index, and twenty individual metro area indices.

History and methodology

The indices are calculated from data on repeat sales of single-family homes, an approach developed by economists Karl Case
Karl E. Case
Karl Case is Professor of Economics Emeritus at Wellesley College where he held the Coman and Hepburn Chair in Economics and taught for 34 years. He is a currently a Senior Fellow at the Joint Center for Housing Studies at Harvard University and was recently elected President of the Boston...

, Robert Shiller
Robert Shiller
Robert James "Bob" Shiller is an American economist, academic, and best-selling author. He currently serves as the Arthur M. Okun Professor of Economics at Yale University and is a Fellow at the Yale International Center for Finance, Yale School of Management...

 and Allan Weiss
Allan Weiss
Allan Neil Weiss has spent his career as an innovator in the areas of asset pricing, asset allocation and risk management. In 1991 he co-founded Case Shiller Weiss, Inc. and served as its CEO from inception to its sale to Fiserv in 2002. CSW is the creator of the Standard & Poor Case-Shiller...

. Case developed a method for comparing repeat sales of the same homes in an effort to study home pricing trends. He was using data from house sales in Boston in the early 1980s, which was going through a housing price boom
Boom and bust
A credit boom-bust cycle is an episode characterized by a sustained increase in several economics indicators followed by a sharp and rapid contraction. Commonly the boom is driven by a rapid expansion of credit to the private sector accompanied with rising prices of commodities and stock market index...

. While Case argued that such a boom was ultimately unsustainable, he had not considered it a bubble
Economic bubble
An economic bubble is "trade in high volumes at prices that are considerably at variance with intrinsic values"...

, a commonly-used term to describe similar market trends. Case sat down with Shiller, who was researching behavioral finance
Behavioral finance
Behavioral economics and its related area of study, behavioral finance, use social, cognitive and emotional factors in understanding the economic decisions of individuals and institutions performing economic functions, including consumers, borrowers and investors, and their effects on market...

 and economic bubbles, and together formed a repeat-sales index using home sales prices data from other cities across the country. In 1991, while Weiss was performing graduate studies under Shiller, he persuaded them to form a company, Case Shiller Weiss, to produce the index periodically with the intent of selling the information to the markets. Fiserv
Fiserv
Fiserv, Inc. provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing , software and systems solutions. The company serves more than 16,000 clients worldwide...

, an information management company, bought Case Shiller Weiss in 2002 and, together with Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...

, developed tradable indices based on the data for the markets which are now commonly called the Case–Shiller index.

Options and futures based on Case–Shiller index are traded on the Chicago Mercantile Exchange
Chicago Mercantile Exchange
The Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization...

.

The national index

The S&P/Case–Shiller U.S. National Home Price Index is a composite of single-family home price indices for the nine U.S. Census
United States Census
The United States Census is a decennial census mandated by the United States Constitution. The population is enumerated every 10 years and the results are used to allocate Congressional seats , electoral votes, and government program funding. The United States Census Bureau The United States Census...

 divisions. It is updated quarterly. (A 39-page PDF available at this link, goes into detail on the index.) The national index is normalized to have a value of 100 in the first quarter of 2000.

The composite and city indices

This index family includes 20 metropolitan area indices and two composite indices as aggregates of the metropolitan areas. These indices are three month moving averages. The composite and city indices are normalized to have a value of 100 in January 2000.

The indices are calculated monthly by Fiserv, Inc. — the company that owns and maintains the index and is published with a two month lag on the last Tuesday of every month. Fiserv can provide a deeper view of home prices, at the zip code level beyond the 10 or 20 Metropolitan Statistical Area (MSA)
United States metropolitan area
In the United States a metropolitan statistical area is a geographical region with a relatively high population density at its core and close economic ties throughout the area. Such regions are not legally incorporated as a city or town would be, nor are they legal administrative divisions like...

 view used by S&P.

Composite 10 index

CSXR is a composite index of the home price index for 10 major Metropolitan Statistical Areas in the United States. The index is published monthly by Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...

 and uses the Karl Case and Robert Shiller
Robert Shiller
Robert James "Bob" Shiller is an American economist, academic, and best-selling author. He currently serves as the Arthur M. Okun Professor of Economics at Yale University and is a Fellow at the Yale International Center for Finance, Yale School of Management...

 method of a house price index
House price index
-FHFA/OFHEO:The US Federal Housing Finance Agency publishes the HPI inx, a quarterly broad measure of the movement of single-family house prices....

 using a modified version of the weighted-repeat sales methodology. This method is able to adjust for the quality of the homes sold, unlike simple indices based on averages. The CSXR is a three month moving average as are the indices that compose it.

The follow indexes are combined to create the CXSR composite index:
Index Home Price Index DescriptionMSA Designation
BOXR  Greater Boston
Greater Boston
Greater Boston is the area of the Commonwealth of Massachusetts surrounding the city of Boston. Due to ambiguity in usage, the size of the area referred to can be anywhere between that of the metropolitan statistical area of Boston and that of the city's combined statistical area which includes...

 
Boston–Cambridge–Quincy, MA
CHXR  Chicago metropolitan area  Chicago–Naperville–Joliet, IL–IN–WI
DNXR  Denver-Aurora Metropolitan Area
Denver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...

 
Denver–Aurora, CO
LVXR  Las Vegas metropolitan area
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...

 
Las Vegas, NV-AZ
LXXR  Greater Los Angeles
Los Angeles Metropolitan Area
The Los Angeles metropolitan area, also known as Metropolitan Los Angeles or the Southland, is the 13th largest metropolitan area in the world and the second-largest metropolitan area in the United States....

 
Los Angeles–Long Beach–Santa Ana, CA
MIXR  South Florida metropolitan area
South Florida metropolitan area
The South Florida metropolitan area, also known as the Miami metropolitan area, and designated the Miami–Fort Lauderdale–Pompano Beach, FL Metropolitan Statistical Area by the U.S...

 
Miami–Fort Lauderdale–Pompano Beach, FL
NYXR  New York metropolitan area
New York metropolitan area
The New York metropolitan area, also known as Greater New York, or the Tri-State area, is the region that composes of New York City and the surrounding region...

 
New York–Northern New Jersey–Long Island, NY–NJ–PA
SDXR  San Diego County, California
San Diego County, California
San Diego County is a large county located in the southwestern corner of the US state of California. Hence, San Diego County is also located in the southwestern corner of the 48 contiguous United States. Its county seat and largest city is San Diego. Its population was about 2,813,835 in the 2000...

 
San Diego–Carlsbad–San Marcos, CA
SFXR  San Francisco  San Francisco–Oakland–Fremont, CA
WDXR Washington Metropolitan Area
Washington Metropolitan Area
The Washington Metropolitan Area is the metropolitan area centered on Washington, D.C., the capital of the United States. The area includes all of the federal district and parts of the U.S...

 
Washington–Arlington–Alexandria, DC–VA–MD–WV

Composite 20 index

SPCS20R is a composite index of the home price index for 20 major Metropolitan Statistical Area's in the United States. The index is published monthly by Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...

 and uses the Karl Case and Robert Shiller
Robert Shiller
Robert James "Bob" Shiller is an American economist, academic, and best-selling author. He currently serves as the Arthur M. Okun Professor of Economics at Yale University and is a Fellow at the Yale International Center for Finance, Yale School of Management...

 method of a house price index
House price index
-FHFA/OFHEO:The US Federal Housing Finance Agency publishes the HPI inx, a quarterly broad measure of the movement of single-family house prices....

 using a modified version of the weighted-repeat sales methodology. This method is able to adjust for the quality of the homes sold, unlike simple indices based on averages.

The follow indexes are combined to create the SPCS20R composite index:
Index Home Price Index DescriptionMSA Designation
PHXR  Phoenix metropolitan area
Phoenix Metropolitan Area
The Phoenix metropolitan area, often referred to as The Valley of the Sun, is a metropolitan area, centered on the city of Phoenix, that includes much of the central part of the US state of Arizona...

 
Phoenix–Mesa–Scottsdale, AZ
LXXR  Greater Los Angeles
Los Angeles Metropolitan Area
The Los Angeles metropolitan area, also known as Metropolitan Los Angeles or the Southland, is the 13th largest metropolitan area in the world and the second-largest metropolitan area in the United States....

 
Los Angeles–Long Beach–Santa Ana, CA
SDXR  San Diego County, California
San Diego County, California
San Diego County is a large county located in the southwestern corner of the US state of California. Hence, San Diego County is also located in the southwestern corner of the 48 contiguous United States. Its county seat and largest city is San Diego. Its population was about 2,813,835 in the 2000...

 
San Diego–Carlsbad–San Marcos, CA
SFXR  San Francisco  San Francisco–Oakland–Fremont, CA
DNXR  Denver-Aurora Metropolitan Area
Denver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...

 
Denver–Aurora, CO
WDXR Washington Metropolitan Area
Washington Metropolitan Area
The Washington Metropolitan Area is the metropolitan area centered on Washington, D.C., the capital of the United States. The area includes all of the federal district and parts of the U.S...

 
Washington–Arlington–Alexandria, DC–VA–MD–WV
MIXR  South Florida metropolitan area
South Florida metropolitan area
The South Florida metropolitan area, also known as the Miami metropolitan area, and designated the Miami–Fort Lauderdale–Pompano Beach, FL Metropolitan Statistical Area by the U.S...

 
Miami–Fort Lauderdale–Pompano Beach, FL
TPXR  Tampa Bay Area
Tampa Bay Area
The Tampa Bay Area is the region of west central Florida adjacent to Tampa Bay. Definitions of the region vary. It is often considered equivalent to the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area defined by the United States Census Bureau. The Census Bureau currently...

 
Tampa–St. Petersburg–Clearwater, FL
ATXR  Atlanta metropolitan area  Atlanta–Sandy Springs–Marietta, GA
CHXR  Chicago metropolitan area  Chicago–Naperville–Joliet, IL–IN–WI
BOXR  Greater Boston
Greater Boston
Greater Boston is the area of the Commonwealth of Massachusetts surrounding the city of Boston. Due to ambiguity in usage, the size of the area referred to can be anywhere between that of the metropolitan statistical area of Boston and that of the city's combined statistical area which includes...

 
Boston–Cambridge–Quincy, MA
DEXR  Metro Detroit
Metro Detroit
The Detroit metropolitan area, often referred to as Metro Detroit, is the metropolitan area located in Southeast Michigan centered on the city of Detroit which shares an international border with Windsor, Ontario. The Detroit metropolitan area is the second largest U.S. metropolitan area...

 
Detroit–Warren–Livonia, MI
MNXR  Minneapolis-Saint Paul  Minneapolis–St. Paul–Bloomington, MN–WI
CRXR  Charlotte metropolitan area
Charlotte metropolitan area
The Charlotte metropolitan area is a metropolitan area/region of North and South Carolina within and surrounding the city of Charlotte...

 
Charlotte-Gastonia-Concord, NC-SC
LVXR  Las Vegas metropolitan area
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...

 
Las Vegas, NV-AZ
NYXR  New York metropolitan area
New York metropolitan area
The New York metropolitan area, also known as Greater New York, or the Tri-State area, is the region that composes of New York City and the surrounding region...

 
New York–Northern New Jersey–Long Island, NY–NJ–PA
CEXR  Greater Cleveland
Greater Cleveland
Greater Cleveland is a nickname for the metropolitan area surrounding Cleveland, Ohio and is part of what used to be the Connecticut Western Reserve.Northeast Ohio refers to a similar but substantially larger area as described below...

 
Cleveland–Elyria–Mentor, OH
POXR  Portland metropolitan area
Portland metropolitan area
The Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area , also known as the Portland metropolitan area or Greater Portland, is an urban area in the U.S. states of Oregon and Washington centered around the city of Portland, Oregon. The U.S...

 
Portland–Vancouver–Beaverton, OR–WA
DAXR  Dallas/Fort Worth Metroplex
Dallas/Fort Worth Metroplex
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area, a title designated by the U.S. Census as of 2003, encompasses 12 counties within the U.S. state of Texas. The area is divided into two metropolitan divisions: Dallas–Plano–Irving and Fort Worth–Arlington. Residents of the area...

 
Dallas–Fort Worth–Arlington, TX
SEXR  Seattle metropolitan area
Seattle metropolitan area
The Seattle metropolitan area in the US state of Washington includes the city of Seattle, King County, Snohomish County, and Pierce County within the Puget Sound region. The U.S...

 
Seattle–Tacoma–Bellevue, WA

Correlations

Macromarkets.com reports the US index has a slightly negative correlation
Correlation
In statistics, dependence refers to any statistical relationship between two random variables or two sets of data. Correlation refers to any of a broad class of statistical relationships involving dependence....

 with stocks
Stocks
Stocks are devices used in the medieval and colonial American times as a form of physical punishment involving public humiliation. The stocks partially immobilized its victims and they were often exposed in a public place such as the site of a market to the scorn of those who passed by...

 and bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

, but slightly positive correlation with commodities and Real Estate Investment Trust
Real estate investment trust
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...

s (REIT). The correlation with REITs is surprisingly low.

Historical values

The national index attained its all-time high of 189.93 in 2006 Q2.
Selected quarterly S&P/Case–Shiller index values
YEAR Q1 Q2 Q3 Q4
1987 62.03 64.09 65.32 66.18
1988 66.67 69.27 70.50 71.22
1989 72.43 74.40 75.22 75.37
1990 75.58
1991 73.43
1992 74.30
1993 74.46
1994 76.46
1995 77.74
1996 79.61
1997 81.82
1998 85.71
1999 92.08
2000 100.00
2001 109.27
2002 118.00
2003 130.48
2004 146.26 152.92 158.53 163.06
2005 169.19 176.70 183.08 186.97
2006 188.66 189.93 188.11 186.44
2007 184.83 183.16 179.94 170.39
2008 159.36 155.93 150.48 139.42
2009 129.2 133.21 137.56 136.04
2010 132.12 138.29 135.48


On December 30, 2008, the index recorded its largest year over year drop. Since that point, the decline slowed but not yet reversed.

Stock tickers

SPCSUSA is a composite Case–Shiller index that tracks national housing prices in the United States. The index symbol is SPCSUSA. It is updated quarterly instead of monthly as with the other Case–Shiller indexes. This index is traded as a forward OTC
OTC
OTC may refer to:* Oakwood Technology College* Owatonna Tool Company* Oklahoma Tax Commission* Odenton Town Center* Officer in Tactical Command* Officer Training Corps* Offshore Technology Conference* Ohio Turnpike Commission...

 (over-the-counter), and not as a listed futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...

 contract.
Index Ticker Home Price Index Description MSA
United States metropolitan area
In the United States a metropolitan statistical area is a geographical region with a relatively high population density at its core and close economic ties throughout the area. Such regions are not legally incorporated as a city or town would be, nor are they legal administrative divisions like...

 Designation
CSXR  SPCS10  Composite A composite index of the top 10 MSA's in the country
SPCS20R  SPCS20  Composite-20 A composite index of the top 20 MSA's in the country
SPCSUSA SPCSUSA US National A composite index for the entire USA
PHXR SPCSPHX Phoenix metropolitan area
Phoenix Metropolitan Area
The Phoenix metropolitan area, often referred to as The Valley of the Sun, is a metropolitan area, centered on the city of Phoenix, that includes much of the central part of the US state of Arizona...

 
Phoenix–Mesa–Scottsdale, AZ
LXXR SPCSLA Greater Los Angeles
Los Angeles Metropolitan Area
The Los Angeles metropolitan area, also known as Metropolitan Los Angeles or the Southland, is the 13th largest metropolitan area in the world and the second-largest metropolitan area in the United States....

 
Los Angeles–Long Beach–Santa Ana, CA
SDXR SPCSSD San Diego County, California
San Diego County, California
San Diego County is a large county located in the southwestern corner of the US state of California. Hence, San Diego County is also located in the southwestern corner of the 48 contiguous United States. Its county seat and largest city is San Diego. Its population was about 2,813,835 in the 2000...

 
San Diego–Carlsbad–San Marcos, CA
SFXR SPCSSF San Francisco  San Francisco–Oakland–Fremont, CA
DNXR SPCSDEN Denver-Aurora Metropolitan Area
Denver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...

 
Denver–Aurora, CO
WDXR SPCSWDC Washington Metropolitan Area
Washington Metropolitan Area
The Washington Metropolitan Area is the metropolitan area centered on Washington, D.C., the capital of the United States. The area includes all of the federal district and parts of the U.S...

 
Washington–Arlington–Alexandria, DC–VA–MD–WV
MIXR SPCSMIA South Florida metropolitan area
South Florida metropolitan area
The South Florida metropolitan area, also known as the Miami metropolitan area, and designated the Miami–Fort Lauderdale–Pompano Beach, FL Metropolitan Statistical Area by the U.S...

 
Miami–Fort Lauderdale–Pompano Beach, FL
TPXR SPCSTMP Tampa Bay Area
Tampa Bay Area
The Tampa Bay Area is the region of west central Florida adjacent to Tampa Bay. Definitions of the region vary. It is often considered equivalent to the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area defined by the United States Census Bureau. The Census Bureau currently...

 
Tampa–St. Petersburg–Clearwater, FL
ATXR SPCSATL Atlanta metropolitan area  Atlanta–Sandy Springs–Marietta, GA
CHXR SPCSCHI Chicago metropolitan area  Chicago–Naperville–Joliet, IL–IN–WI
BOXR SPCSBOS Greater Boston
Greater Boston
Greater Boston is the area of the Commonwealth of Massachusetts surrounding the city of Boston. Due to ambiguity in usage, the size of the area referred to can be anywhere between that of the metropolitan statistical area of Boston and that of the city's combined statistical area which includes...

 
Boston–Cambridge–Quincy, MA
DEXR SPCSDET Metro Detroit
Metro Detroit
The Detroit metropolitan area, often referred to as Metro Detroit, is the metropolitan area located in Southeast Michigan centered on the city of Detroit which shares an international border with Windsor, Ontario. The Detroit metropolitan area is the second largest U.S. metropolitan area...

 
Detroit–Warren–Livonia, MI
MNXR SPCSMIN Minneapolis-Saint Paul  Minneapolis–St. Paul–Bloomington, MN–WI
CRXR SPCSCHAR Charlotte metropolitan area
Charlotte metropolitan area
The Charlotte metropolitan area is a metropolitan area/region of North and South Carolina within and surrounding the city of Charlotte...

 
Charlotte-Gastonia-Concord, NC-SC
LVXR SPCSLV Las Vegas metropolitan area
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...

 
Las Vegas, NV-AZ
NYXR SPCSNY New York metropolitan area
New York metropolitan area
The New York metropolitan area, also known as Greater New York, or the Tri-State area, is the region that composes of New York City and the surrounding region...

 
New York–Northern New Jersey–Long Island, NY–NJ–PA
CEXR SPCSCLE Greater Cleveland
Greater Cleveland
Greater Cleveland is a nickname for the metropolitan area surrounding Cleveland, Ohio and is part of what used to be the Connecticut Western Reserve.Northeast Ohio refers to a similar but substantially larger area as described below...

 
Cleveland–Elyria–Mentor, OH
POXR SPCSPORT Portland metropolitan area
Portland metropolitan area
The Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area , also known as the Portland metropolitan area or Greater Portland, is an urban area in the U.S. states of Oregon and Washington centered around the city of Portland, Oregon. The U.S...

 
Portland–Vancouver–Beaverton, OR–WA
DAXR SPCSDAL Dallas/Fort Worth Metroplex
Dallas/Fort Worth Metroplex
The Dallas–Fort Worth–Arlington Metropolitan Statistical Area, a title designated by the U.S. Census as of 2003, encompasses 12 counties within the U.S. state of Texas. The area is divided into two metropolitan divisions: Dallas–Plano–Irving and Fort Worth–Arlington. Residents of the area...

 
Dallas–Fort Worth–Arlington, TX
SEXR SPCSSEA Seattle metropolitan area
Seattle metropolitan area
The Seattle metropolitan area in the US state of Washington includes the city of Seattle, King County, Snohomish County, and Pierce County within the Puget Sound region. The U.S...

 
Seattle–Tacoma–Bellevue, WA

External links

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