Undergraduate Economics Association

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By: Jeevan Parameswaran, Spencer Petitti (VPs of Editorial Content)

Week 5

Undergraduate Economics Association

Overview

1. New Residential Construction Report1. Building Permits Survey2. Survey of Construction

1. Housing Starts2. Housing Completions

2. S&P’s Case-Shiller Index1. National2. 10-city 3. 20-city

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Undergraduate Economics Association

New Residential Construction Report

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• Released jointly by U.S. Census Bureau and Department of Housing and Urban Development• Building Permits Survey

• At or around 12th working day of following month• Revised on the 18th

• Survey of Construction• At or around 12th working day of following month

• Leading indicators!• Can lower bond prices, causing interest rates to rise

• New privately-owned residential buildings authorized by permit or in area not requiring permit (4 major regions of US)• Building Permits• Housing Starts• Housing Completions

Undergraduate Economics Association

S & P’s Case-Shiller Index

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• Tracks changes in value of residential real estate• Calculated as a price indices

• Base year 2000, base value 100• Released last Tuesday of each month• Uses the “repeat sales method” of index calculation

• Uses data on properties that have sold at least twice• Lagging Indicator• 3 different calculations:

• Case-Shiller National Home Price Index• Calculated quarterly• Composite based on the 9 U.S Census divisions (4

main)• Case-Shiller 20-City Composite Home Price Index

• Calculated monthly using 3-month moving average• Case-Shiller 10-City Composite Home Price Index

• Calculated monthly using 3-month moving average

Undergraduate Economics Association

Composite of 10BostonChicagoDenverLas VegasLos AngelesMiamiNew YorkSan DiegoSan FranciscoWashington, D.C.

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Composite of 20AtlantaBostonCharlotteChicagoClevelandDallasDenverDetroitLas VegasLos AngelesMiamiMinneapolisNew YorkPhoenixPortlandSan DiegoSan FranciscoSeattleTampaWashington, D.C.

U.S. National

Undergraduate Economics Association

Undergraduate Economics Association

Undergraduate Economics Association

Upcoming:

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• SQL Workshop• In two weeks, will go over the basics of using SQL

Database• Article Report• Come prepared with a 1 page report on your selected

indicators• The report should touch on the following:• Data (current and past 6 months)• Impact Assessment• Future Expectations