Author : Federal Reserve Federal Reserve Board
Publisher : CreateSpace
ISBN 13 : 9781503222953
Total Pages : 26 pages
Book Rating : 4.2/5 (229 download)
Book Synopsis Are Homeowners in Denial about Their House Values? Comparing Owner Perceptions with Transaction-Based Indexes by : Federal Reserve Federal Reserve Board
Download or read book Are Homeowners in Denial about Their House Values? Comparing Owner Perceptions with Transaction-Based Indexes written by Federal Reserve Federal Reserve Board and published by CreateSpace. This book was released on 2014-11-14 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The boom and bust of the housing market has been a prominent feature of the household financial landscape in recent years. The exact magnitude of the house price swings depends on whether you ask homeowners how much their houses are worth at two points in time or use the change in a transaction-based house price index (HPI). During the boom, owner-reported values rose much more rapidly than the HPI, and after the bust, owner-reported values fell slightly less than the HPI. Individual homeowner 'errors' are estimated to explain about one-third of the different in aggregate changes in the housing stock as measured by the Survey of Consumer Finances and CoreLogic national HPI. In a panel of homeowners surveyed during the housing downturn, owner-reported changes in value do not systematically diverge from local house price index changes.