Repeat-Sales Method

Filed Under » ,
Dictionary Says

Definition of 'Repeat-Sales Method'

A way of calculating changes in the sales price of the same piece of real estate over time. Housing market analysts use repeat sales to estimate changes in home prices over a period of months or years. Various housing price indexes use the repeat-sales method to provide information about the housing market to homebuyers and sellers, housing market investors, and those working in the housing and housing finance industries.
Investopedia Says

Investopedia explains 'Repeat-Sales Method'


Perhaps the most well-known housing index that uses the repeat-sales method is the Case-Shiller Index, which measures changes in house prices. It excludes new construction, condos and co-ops. It also excludes non-arms-length transactions, such as home sales between family members at below-market prices. It does include foreclosure sales. Other indexes that use the repeat-sales method are the Federal Housing Finance Agency’s monthly House Price Index, which is based on Fannie Mae and Freddie Mac’s data on single-family home sale prices and refinance appraisals; and CoreLogic’s LoanPerformance Home Price Index, which covers a broader geographic area than the Case-Shiller or FHFA indexes. Canada’s major home price index, the National Composite House Price Index, uses the repeat-sales method, too. Indexes such as these typically report changes in home prices from the previous month, quarter and year. Increasing home prices indicate increasing demand, while decreasing prices indicate decreasing demand.
 
An advantage of repeat-sales methods is that they calculate changes in home prices based on sales of the same property, so they avoid the problem of trying to account for price differences in homes with varying characteristics. Repeat-sales methods also offer a more accurate alternative to regression analysis or to calculating average sales price by geographic area. A shortcoming of repeat-sales methods is that they don’t account for homes that were sold only once during the reported time period. These sales are also meaningful indications of housing market activity. 

Articles Of Interest

  1.

    How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.

  2. Understanding The Case-Shiller Housing Index

    This index is a widely-used and respected barometer of the U.S. housing market and the broader economy.

  3. Insuring Federal Housing Authority Mortgages

    This insurance has an edge over private mortgage insurance. Find out why.

  4. Housing Cooperatives: A Unique Type Of Home Ownership

    Co-ops are often less expensive than apartments and provide some unique benefits and drawbacks for owners.

  5. Investing With Purpose And For Profit: Affordable Housing

    Successful real estate investors are more than just landords - they are savvy business executives.

  6. Why Housing Market Bubbles Pop

    Home price appreciation is not assured. Can you withstand the volatility in this market?

  7. Remodeling The Housing Finance Industry

    The meltdown in mortgage-backed securities is bringing about reform in home financing.

  8. Foreclose On High Housing Prices

    Foreclosed homes may be financially appealing, but there are many obstacles to consider before buying.

  9. Take Advantage Of A Housing Crisis - Rent!

    When a housing crisis strikes, the big winners are often the renters.

  10. Housing Deals That Fall Through

    Find why buyers back out and what you can do if you're left holding the bag.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center