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. Home & Auto

    An Introduction To Real Estate Futures

    These futures are intended for institutional use, but retail investors looking to speculate on prices can benefit as well.
  2. Active Trading

    How Companies Use Derivatives To Hedge Risk

    Derivatives can reduce the risks associated with changes in foreign exchange rates, interest rates and commodity prices.
  3. Investing

    What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell a specific type of asset at a specific time at a given price. However, ...
  4. Active Trading Fundamentals

    What is the difference between hedging and speculation?

    Hedging involves taking an offsetting position in a derivative in order to balance any gains and losses to the underlying asset. Hedging attempts to eliminate the volatility associated with the ...
  5. Investing

    How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between two parties to buy or sell an asset at a particular time in the future ...
  6. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  7. Options & Futures

    What are the differences between divergence and convergence?

    Find out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect trading strategies.
  8. Options & Futures

    What are the most common momentum oscillators used in options trading?

    Read about some of the most common technical momentum oscillators that options traders use, and learn why momentum is a critical concept for options trading.
  9. Options & Futures

    Futures Quotes Explained The "Easy" Way

    If there’s a security whose price fluctuates, there can theoretically be a futures marketplace for it.
  10. Options & Futures

    How are Bollinger Bands® used in options trading?

    Use Bollinger Bands to identify volatility changes and place options trades at the right time; profit in bull or bear markets using these strategies.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center