Made possible through a research agreement with the Texas Association of Realtors, the free index tracks real home price appreciation in the state’s four big metros and a handful of mid-sized ones. In addition, it provides indexes by price tier for some of the larger Texas markets.
The THPI uses repeats sales analysis, which measures the change in sales price from multiple sales of the same house. It uses real sales data collected from an improved and expanded database.
“Repeat sales analysis takes another step to isolate true home price appreciation,” said Center Senior Data Analyst Joshua Roberson. “Ideally, the analysis includes only homes that have had no or minimal physical changes to focus on market-driven price appreciation.”
This method has a number of advantages over other types of analysis. First, home sales are screened to identify properties that have sold at least twice, helping with the issue of changing market mix from period to period.
Second, looking at properties that have sold multiple times shifts the focus to the change in price since the last sale of a specific property. This helps capture appreciation.
While a handful of other repeat sales analyses are available, the Center’s index is unique because it not limited by mortgage data or public housing records.
Coverage includes quarterly indexes for Austin-Round Rock, Dallas-Fort Worth-Arlington, Houston-The Woodlands-Sugar Land, and San Antonio-New Braunfels as well as Amarillo and El Paso. Variations of DFW include Dallas-Plano-Irving and Fort Worth-Arlington metropolitan divisions.
The index is available for free at www.recenter.tamu.edu/data/home-price-index/.
Funded primarily by Texas real estate licensee fees, the Real Estate Center was created by the state legislature to meet the needs of many audiences, including the real estate industry, instructors, researchers, and the public. The Center is part of Mays Business School at Texas A&M University.