Zillow versus Case-Shiller housing index - Liking Zillow data

 

I have been studying the housing market for the last few years. We are in another housing bubble that is worse than the last one before the GFC. The great increase in money during the pandemic added fuel to the bubble fire. 

Of course, this time is different. There is less leverage, and many buyers have locked in low rate mortgages, We are currently in a world of limited supply which has not allowed prices to fall, but there is a fundamental problem looking at the housing market. What is thew right price? 

The go-to choice for tracking the housing market has been the Case-Shiller index, yet there is now a good substitute. I am really liking the Zillow index which is more comprehensive and timelier. It tracks well with the Case-Shiller index, but a review of the differences suggests that this may be a better measure. It is worth following and is available through the FRED database.