Statistical Methods for Estimating House Price Index

Abstract

House Price Index (HPI) is the key barometer of house prices measured from the aggregated house sales transactions data. HPI provides summary of the housing market that is used to track the movement in the house prices through time and analyze the performance of housing market. It is one of the most closely monitored economic indicators in the United States. In US, HPIs are estimated and published at various levels of geographic region including US census divisions, states, Metropolitan Statistical Area (MSA), Core Based Statistical Area (CBSA), zip code. The most popular indices published in US are FHFA HPI, Standard & Poor’s Case-Shiller Indices, Nahb