How to Use the House Price Index (HPI)

Investors use a variety of economic indicators, like the HPI, to monitor larger economic trends and
prospective changes in the stock market.

House price fluctuations may have a significant impact on the economy. Price rises typically result in an
increase in employment, a boost in confidence, and more consumer spending. This opens the door for
higher total demand, which in turn spurs GDP growth and overall economic expansion.

The converse typically occurs when prices decrease. The corporations benefiting from the demand for
real estate lay off workers as consumer confidence declines. Sometimes, this might lead to a recession in
the economy.

Comparison of the S&P CoreLogic Case-Shiller Home Price Indexes and the House Price Index (HPI)

One of several house price monitors is the HPI. S&P CoreLogic Case-Shiller Home Price Indices are a few
of the most well-known substitutes.

These indices use various data sources and measurement methods, which leads to a range of findings.
For instance, the S&P CoreLogic Case-Shiller Home Price indexes are value-weighted, but the HPI gives
equal weight to each home.

Moreover, the all-transactions HPI include refinancing evaluations as well, whereas Case-Shiller indexes
solely utilize purchase prices. Additionally, the HPI offers broader coverage.