New Index Contradicts Reports of Falling Home Prices - | ArmandoMontelongo.com

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New Index Contradicts Reports of Falling Home Prices

A new home-price index that claims to be reporting data with virtually no lag time said values have been rising gradually for the last three months.

The Burns Home Value Index calculates values based on the price set when contracts are signed, which typically is three to four months before the data is reported.

The index claims to be three months ahead of the median home price data from the National Association of Realtors and four to six months ahead of the widely watched S&P/Case-Shiller composites. (The chairman of the S&P index committee went on his company’s blog Wednesday to defend the long lag time in a post called Speed vs. Accuracy.)

According to the Burns report, prices were up in 90 of the 97 markets in the last three months, and in 93 of those markets in the last month. The average price increase was 1.1 percent for the last three months.

 What do you think? Is this a better source for current trends? Tell us your thoughts: