House price index

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A House Price Index (HPI) measures the price of residential housing.

United States


The US Federal Housing Finance Agency (formerly Office of Federal Housing Enterprise Oversight aka OFHEO) publishes the HPI inx, a quarterly broad measure of the movement of single-family house prices.

The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties in 363 metropolises. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

Since the HPI index only includes houses with mortgages within the conforming amount limits, the index has a natural cap and does not account for jumbo mortgages.

The HPI was developed in conjunction with OFHEO's (now FHFA) responsibilities as a regulator of Fannie Mae and Freddie Mac. It is used to measure the adequacy of their capital against the value of their assets, which are primarily home mortgages.

On July 30, 2008 OFHEO became part of the new Federal Housing Finance Agency (FHFA). The index is now termed the FHFA HPI.

S&P/Case-Shiller Indices

The Case-Shiller index prices are measured monthly and tracks repeat sales of houses using a modified version of the weighted-repeat sales methodology proposed by Karl Case and Robert Shiller and Allan Weiss. This means that, to a large extent, it is able to adjust for the quality of the homes sold, unlike simple averages.

As a monthly tracking index, Case-Shiller Index has long lag time. Typically, it takes about 2 months for S&P to publish the results, as opposed to 1 month for most other monthly indices and indicators. Specific indexes are available for specific metropolitan areas, and composite indexes for the top 20 and top 10 metro areas, and nationwide.

FNC Residential Price Index

FNC Inc. publishes the Residential Price Index, which is based on data collected from public records blended with data from real-time appraisals of property and neighborhood attributes. The RPI is the mortgage industry's first hedonic price index for residential properties. The RPI is constructed to gauge price movement among non-distressed home sales, and excludes sales of foreclosed properties.1

As a monthly tracking index, the RPI has a lag time of about two months. Specific indices are available for specific metropolitan areas, and composite indices are available for the top 10, 20, 30, and 1002 metro areas. The RPI is also available at the zip code level and can be constructed to track price trends for specific characteristics (e.g., ranch-style house, colonial-style house, etc.) since preferences can change over time.

United Kingdom

House Price Indices (HPIs) have been produced in the UK since around 1973, initially by mortgage-providers, and more recently by government bodies. More recently, they have come from property market websites.

The dominant methodologies are

Governmental house price indices

  • The Land Registry House Price Index is calculated on behalf of HM Land Registry by Calnea Analytics. It uses the Land Registry’s own data, which consists of the transaction records of all residential property sales in England and Wales. It uses Repeat Sales Regression. The number of monthly transactions is approximately 100,000 per month. The index excludes sales from repossessions and auctions as these "do not represent full market price".3

Private sector house price indices

  • The Nationwide House Price Index and Halifax House Price Index use Hedonic regression (also known as the characteristics based method) using their own datasets compiled from their mortgage lending. These indices have a longer time-series than the Governmental HPIs.

Current UK indices

Index Calculated by Source data Observations (approx) Quality Adjustment Method Local Indices Frequency Price Observations
HM Land Registry Calnea Analytics HM Land Registry 100k RSR Yes Monthly Actual price paid
Knight Frank Knight Frank Knight Frank 100k RSR Yes Monthly -
DCLG DCLG Lender data 45k SMA Regional Only Monthly Mortgage completions
Halifax Halifax Loan approvals 12k HR Regional Only Monthly Price agreed at time of loan approval
Nationwide Nationwide Loan approvals 12k HR Regional Only Monthly Price agreed at time of loan approval Calnea Analytics Rental prices Undisclosed HR Regional Only Monthly Rental prices Calnea Analytics Asking prices online 800k SMA Regional Only Monthly Asking price
Rightmove Rightmove Asking prices online Undisclosed SMA Regional Only Monthly Asking price
Financial Times Acadametrics Land Registry 100k SMA Yes Monthly Actual price paid


In the Republic of Ireland, Permanent TSB (a large mortgage lender) and the Economic and Social Research Institute (a think-tank) have published a monthly houseprice index since January 1996.


In India, National Housing Bank completely owned by Reserve Bank of India computes an index termed NHB RESIDEX. The index was formulated based on a pilot study covering 5 cities, Delhi, Mumbai, Kolkata, Bangalore and Bhopal representing the five regions of the country. Actual transactions prices are used to compute an Index reflecting the market trends. 2007 is taken as the base year for the study to be comparable with the WPI and CPI.4 It now covers 5 Delhi with NCR, Bangalore, Mumbai, Kolkata, Bhopal, Hyderabad, Faridabad, Patna, Ahmedabad, Chennai, Jaipur, Lucknow, Pune, Surat, Kochi, Bhubaneshwar, Guwahati, Ludhiana, Vijayawada, Indore, Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur. The index shows that the prices have doubled in cities like Mumbai, Delhi and Bhopal, but have declined in Hyderabad and Kochi.


In Canada, the New Housing Price Index is calculated monthly by Statistics Canada. As well, a resale house price index is also maintained by the Canadian Real Estate Association, based on reported sale prices submitted by real estate agents, and averaged by region. In December 2008, the private National Bank and the information technology firm Teranet began a separate monthly house price index based on resale prices of individual single-family houses in selected metropolitan areas, using a methodology similar to the Case-Shiller index6dead link and based on actual sale prices taken from government land registry databases. This allows Teranet and the National Bank to track prices without allowing periods of high sales in one city to push up the national average.7 The National Bank also operates a forward market on Canadian housing prices.

See also



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