Homes.com Local Market Index FAQ’s

What is the Homes.com Local Market Index?
The Homes.com Local Market Index is a measurement of the price performance on repeat sales properties in the United States. The index covers both single family and multi-unit (condo/townhomes/etc) residencies and is compiled monthly for the top 300 metropolitan markets.

How is the index calculated?
The index is calculated from data on sales of same homes over time allowing a side by side comparison of the same property which tracks more accurately the monthly growth and decline in home prices over a longer period of time.  Each sales pair that is observed is grouped with all other sales pairs found within the area to create a highly localized, neighborhood-level index.

What calculation periods are included?
The index is calculated monthly, using a three month moving average, for the most recent available thirteen month period.

How does the index work?
The index tracks changes in the median calculated price of repeat sales transactions for the same residential property over a monthly period in 300 local markets, with the changes being measured month to month using a rolling three month average, quarter to quarter, and year over year.  The changes noted in the report (+ or -) are the changes in the index value for the measured period.  Therefore, a positive value indicates growth in the sales price and a negative value indicates a drop in the sales price.

What is a normal market index level?
The index is normalized to have a value of 100 at the beginning of the year 2000 with each metropolitan market having a corresponding index value.  An index value above 100 indicates sales prices above the normalized level while an index value below 100 indicates sales prices below the normalized level.

Which markets and how many are covered?
The Index covers the top 300 Core Based Statistical Areas (CBSAs) in the US, as measured by the U.S. Census Bureau and ranked by population. View a complete list here.

What types of properties does it include?
The indices track single family and multi-unit residencies separately.  Multi-unit properties include condominiums, townhouses, and/or any other type of multi-unit residential property.

What transaction prices does it include?
The index includes all arm’s-length transaction values and does not segment based on price.

How are index values calculated for property transactions within non-disclosure states?
Most information regarding real estate transactions in the U.S. is available for public access. However, some states deem the transaction sale value to be private and confidential information. These states are considered to be “non-disclosure” states. The standard practice in non-disclosure states is to estimate the sale amount using a formula that is based on the careful study of sales transactions and the ratio of the purchase price to the mortgage amount.

The states in the U.S. that are classified as non-disclosure states are:

  • Alaska
  • Idaho
  • Indiana
  • Kansas
  • Louisiana
  • Maine
  • Mississippi
  • Missouri
  • Montana
  • New Mexico
  • North Dakota
  • Texas
  • Utah
  • Wyoming

For non-disclosure states, the Homes.com Local Market Index uses a broader geographical model, based on a variety of data points, to calculate the index values accordingly. This will smooth out the level of variances for index values regarding micro areas, including zip code and census tract level, within markets located in non-disclosure states.

What is the Rebound Report?
The Homes.com Local Market Index includes a separate Rebound Report for each of the 300 local markets and tracks how far each market has recovered from its peak-to-trough decline in index value attributable to the Great Recession, a recently marked global economic decline that correlated with the bursting of the U.S. Housing Bubble. This report provides a useful way of understanding how the housing recovery process is unfolding across the country.

How is the Rebound Report calculated?
The Rebound is the percentage amount recovered from the peak-to-trough decline in index value from 2005 forward in order to isolate the impacts of the Great Recession.

How do I obtain a detailed report for one of the 100 markets in the Homes.com Local Market Index?
Please send an email to localmarketreports@homes.com with the specific market listed along with your contact information (name, phone and email address) and how you plan to the use the Homes.com Local Market Index.