Comments on: Zillow vs. Case-Shiller – What You Need to Know http://www.toolsforrealestate.com/zillow-vs-case-shiller-what-you-need-to-know/ Real estate email newsletters and marketing tools for real estate agents Mon, 19 Jul 2010 18:35:19 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Jason Houghton http://www.toolsforrealestate.com/zillow-vs-case-shiller-what-you-need-to-know/comment-page-1/#comment-102 Jason Houghton Tue, 07 Apr 2009 23:37:15 +0000 http://www.toolsforrealestate.com/?p=836#comment-102 I think you're right on here with your analysis of what Zillow is doing wrong. Maybe they have a point in that "being in foreclosure" puts a stigma on that particular home, but does it explain it all? I don't think so. So excluding it from their data makes the results skewed incorrectly in my opinion. I think the way Case-Schiller Index shows the data in much more objective point of view is better for examining home prices. I think what Zillow is trying to say to homeowners thinking about selling is: as long as your home isn't in foreclosure, you'll be able to stay out of the red line on the graph and remain in the higher black line. However, in my opinion, the sale of all those foreclosed homes brings the entire market down (as Case-Schiller shows) as consumers can find cheaper comparable homes being sold in the "red line" group. I think you’re right on here with your analysis of what Zillow is doing wrong. Maybe they have a point in that “being in foreclosure” puts a stigma on that particular home, but does it explain it all? I don’t think so. So excluding it from their data makes the results skewed incorrectly in my opinion.

I think the way Case-Schiller Index shows the data in much more objective point of view is better for examining home prices. I think what Zillow is trying to say to homeowners thinking about selling is: as long as your home isn’t in foreclosure, you’ll be able to stay out of the red line on the graph and remain in the higher black line. However, in my opinion, the sale of all those foreclosed homes brings the entire market down (as Case-Schiller shows) as consumers can find cheaper comparable homes being sold in the “red line” group.

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