S&P/Case-Shiller Home Price Indexes

AAA

DEFINITION of 'S&P/Case-Shiller Home Price Indexes'

A group of indexes that tracks changes in home prices throughout the United States. The indexes are based on a constant level of data on properties that have undergone at least two arm's length transactions. Case-Shiller produces indexes representing certain metropolitan statistical areas (MSA) as well as a national index.

INVESTOPEDIA EXPLAINS 'S&P/Case-Shiller Home Price Indexes'

S&P/Case-Shiller Home Price indexes are used as the underlying pricing mechanism in CME housing futures and options. CME housing futures and options trade on different indexes representing 10 different metropolitan statistical areas and a composite index representing 20 metropolitan statistical areas.

This is not to say that the indexes are a perfect representation of the housing market, because only single-family dwellings are included in the calculation. Furthermore, because some of the metropolitan areas are so large (Such as New York City or Los Angelas), having just one value may not accurately represent all areas within that city.

RELATED TERMS
  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  4. Option

    A financial derivative that represents a contract sold by one ...
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on ...
  6. S&P/Case-Shiller U.S. National ...

    An index that measures the change in value of the U.S. residential ...
Related Articles
  1. An Introduction To Real Estate Futures ...
    Home & Auto

    An Introduction To Real Estate Futures ...

  2. How Companies Use Derivatives To Hedge ...
    Active Trading

    How Companies Use Derivatives To Hedge ...

  3. What is the difference between forward ...
    Investing

    What is the difference between forward ...

  4. What is the difference between hedging ...
    Active Trading Fundamentals

    What is the difference between hedging ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center