House price index

A real estate index is an index that indicates the price or value changes in the real estate market or individual segments of the property market. Real estate indices can form the basis for derivatives.

• 2.1 Germany
• 2.2 USA
• 2.3 UK

General

While the creation of stock market indices for everyone is possible because the courses are publicized and continuously transactions come about due to the liquidity of the markets for real estate indices is the procurement of the basic data a difficult task.

Basically, real estate indices can be created based on transactions or valuation is based.

Transaction-based indices

In transaction-based indices, the purchase prices for the indeed made in the investigation period transactions are the basis. As the number of transactions ( compared with stock exchanges ) is relatively small, the calculation of the index is not daily but at longer intervals, often annually.

The purchase prices are not public in Germany. Only the purchase price of land will be reported to the reviewing board of circles and can be used for calculations. Therefore, real estate indices can be determined only by sellers themselves or associations of the real estate industry.

There are also in this procedure systematic distortions: How often limited to the sales of new buildings will be considered. Also a representative distribution of the objects is not given to regions and property types.

Rating -based indices

For valuation based indices, the values ​​of existing properties analogous to the evaluation on value appraisals are determined. Drivers of change in value are here primarily the change in rents. This approach has the advantage of being independent of randomly occurring transactions. However, an evaluation of a variety of real estate is expensive and the accuracy of the determination of the values ​​is low.

Individual indices

Germany

In Germany compete a number of providers with different data bases and concepts. A leading index has not emerged. So there are:

USA

In the U.S., the Case-Shiller Index is the leading real estate index. The marketed by S & P index is published monthly for various submarkets: a nationwide residential property index, an index for the top 10 or 20 cities and 20 single indexes for individual metropolitan areas.

Another important property index is the FHFA House Price Index from the Federal Housing Finance Agency ( FHFA ). The Federal House Finance Agency is the regulator of Fannie Mae and Freddie Mac.

The NAHB / Wells Fargo Housing Market Index (HMI, NAHB housing market index also known ) published by the National Association of Home Builders ( NAHB ). It reflects the business expectations of contractors who specialize in single family homes, resist.

UK

In the UK IPD index is the leading real estate index.

Real estate equity indices

Real estate equity indices reflect in contrast to real estate indices not represent the performance of the real estate, but those corporations that specialize in real estate management (eg REITs) resist. Examples are the German real estate stock index ( DIMAX ), or real estate Austrian Traded Index ( IATX ).