Home prices jumped a dizzying 12.2 percent in the nation’s top metro markets in May, according to the latest Case-Shiller report.
For the majority who are not real estate junkies, the Case-Shiller home price index is the industry’s bible, co-founded by none other than local guy Karl Case, now professor emeritus of economics at Wellesley College.
Greater Boston prices rose by a much more modest 1.8 percent in May over April, though we are up a fairly substantial 7.5 percent compared to a year ago, according to Case-Shiller, which focuses solely on resales of existing homes.
However, online real estate portal and research firm Zillow is taking aim at the Case-Shiller numbers, arguing the price increases are somewhat artificial since they include re-sales of foreclosures.
Actually, “not very believable” are the words Zillow uses to describe the latest Case-Sill
Zillow is predicting a slowdown in price increases, including a mere 1.2 percent increase in the Boston area over the next year, arguing higher interest rates will cool the market down.
Gutsy move by Zillow, but I am not buying their numbers.
Given what we are seeing right now in terms of steep price increases, which are duly being reported not just by Case-Shiller, but by The Warren Group and other reputable sources, I’d have to say that if there is anything that’s not particularly believable, it is Zillow’s projections.