Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related images(s).

David Leonhardt of the New York Times, does a very cool breakdown of the Nation’s housing markets, to prove incorrect the mainstay argument that housing prices, based on OFHEO numbers (the official government stats), have not shown an annual decline since their inception in 1950. Because OFHEO excludes all transactions with non-conforming mortgages (currently over $417,000), a large swath of data is excluded, especially in the coastal cities where housing prices are higher.

It should be pointed out that OFHEO also includes the appraised value of refinance transactions, which can be the majority of the sales data captured by Fannie Mae and Freddie Mac in a certain period of time.

He instead relies on the numbers provided by Case Shiller which do not exclude non-conforming loans like OFEHO does (however, Case Shiller does exclude new construction, condos and foreclosures, which have been key components of the housing market boom of the past 5 years).

David does a wonderful job at explaining the methodology in the video and the interactive graphics are amazing. He emphasizes using inflation in the presentation of housing prices.

Click here for interactive graphic and short video on the US housing market.

Source:NYT



Tags: ,


4 Responses to “[Getting Graphic] Getting Real Nominal On US Housing”

  1. John K says:

    Is it true that the OFHEO numbers don’t include condominiums, either?

  2. Jonathan J. Miller says:

    Correct. Also, co-ops and PUD’s (like condos)

  3. Please Read - Special Note from Coppedge & Friday 8/31 Newsclips says:

    […] government stats), have not shown an annual decline since their inception in 1950 … more millersamuel […]

  4. […] In his most recent column, he sets out to “prove incorrect the mainstay argument that housing prices, based on OFHEO numbers (the official government stats), have not shown an annual decline since their inception in 1950.” (Quote because I took this story idea from Jonathan Miller’s Matrix blog.) […]