US FHFA House Price Index: East North Central Region

Understanding US FHFA House Price Index: East North Central Region

The East North Central region is reflected through the price change level of single-family houses with sufficient repeat observations within the area, rather than taking a simple average of listing prices. By tracking the same assets, the index reduces distortions caused by quarters with an unusually high number of large or small houses. This series isolates the eastern part of the Midwest; it is not identical to the West North Central region, nor does it cover the entire Midwest as broadly defined regional housing activity indicators do.

To read correctly, distinguish between price increases and liquidity increases: the index can rise even when the number of sales weakens. Year-on-year comparisons are generally suitable for limiting the effects of weather and trading seasons, whereas quarter-on-quarter comparisons help detect turning points early but are more prone to noise. New observations are subject to revision when underlying data is supplemented. When contrasting with the Midwest indicator, note the differences in geographical boundaries; a broader encompassing series is not a fully equivalent benchmark.