Standard & Poor's, publisher of the closely watched S&P/Case-Shiller Home Price Indices, is set to launch on Nov. 25 new indexes that track condominium prices in five major metropolitan markets—Boston, Chicago, Los Angeles, New York and San Francisco.
That is not the only move building on the popularity of the Case-Shiller indexes. For every season ... there will be more real estate indexes from S&P. The company plans to create seasonally adjusted versions of the existing Case-Shiller indexes, that cover the residential real estate markets in the U.S—the 10-City, 20-City and National Composite indexes. S&P will also create seasonally adjusted versions of the three new condo indexes.
The existing Case-Shiller indexes are about to get even more exposure as they enter the exchange-traded funds world through MacroShares portfolios. These funds are not only unique for targeting the niche residential real estate indexes, but will launch using an initial public offering process never before used by the ETF industry.
David Blitzer, managing director & chairman of the Index Committee at Standard and Poor's, said in a statement that condo prices behave very differently from residential home prices, and that the condo indexes will provide property owners and investors a more complete picture of the U.S. housing market, as well as more specific takes on relative real estate performance.
The condominium indexes covering the five major metropolitan areas will include historical data beginning in January 1995. The seasonally adjusted data will have the same history as its underlying index, which for the existing Case-Shiller indexes, goes back as far as January 1987.
The new indexes will be part of the supplemental home price data series that are normally available by 9:30 a.m. on the last Tuesday of every month.
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