I was too busy with my blog project to post on the OFHEO quarterly data when it came out on March 1.
The OFHEO data is a bit different than the National City data (which doesn’t include appraisal data from refinancings) but both estimate the actual appreciation in U.S. home prices.
Although the median home price data graphs I make from the ASU data are one of the most popular features of this blog, median home price changes do not measure appreciation. It’s better to know appreciation than median home price changes.
The problem with median home price changes is that they tend to exaggerate price changes both up and down. So, when appreciation goes up, the median home price will tend to go up more than the actual appreciation. And when appreciation goes down, the median home price will tend to go down more than the actual appreciation.