Slowing secondary house prices indices point the way

The modest rate of house price appreciation on some secondary measures stems from the fact that they exclude foreclosures and distressed sales. The Case-Shiller and CoreLogic indices, by contrast, are still posting strong year-on-year gains in part because they include this in-demand segment of homes. Looking ahead, a declining share of foreclosed and distressed sales is another reason to expect these measures of house price inflation in which we put most stock to slow.