A number of industry experts claim that property values are reaching their bottom, while others argue that they still have a ways to drop. However, this can all depend on which home price index is being examined.
Major home prices indices published by companies and agencies, such as Standard & Poor's/Case-Shiller, the Federal Housing Administration and National Association of Realtors, all have different ways of assessing property values, according to a recent report from the Wall Street Journal.
For example, one index, which excludes the value of distressed properties, could give the indication that prices are reaching their bottom. In contrast, a second HPI that includes the values of foreclosed houses and short sales, which add downward pressure to home prices, could show that they are still in decline.
Additionally, the mix of homes listed and sold, adjustments made on a seasonal basis and the impact of key local housing market, are other factors that some composites account for while other don't, one industry experts told the newspaper.
As major home price reports continue to differ from one another, some industry experts say, depending on which index consumers pay attention to, this could have a negative effect on property sales in the future.