When we talk about the Standard and Poor’s Case Shiller Index we are most often talking about the National index (there are 10 and 20 city composite indices) or the Portland index from the Home Price Value report (as I wrote yesterday). Case Shiller also publishes a more targeted report which breaks each reported MSA into three tiers:
S&P Indices publishes supplemental tiered price data for 17 of the metro areas it covers. Tier breakpoints – price levels that divide recent sale prices in each market into thirds – are calculated for the period covered by the latest, most up-to-date index points. A closer look at these data shows, as was the case with aggregate home prices, that MSAs did not behave the same across and within tiers.
In Portland, Low Tier houses had the highest increase since 2000 and has remained higher than the other tiers. In both San Francisco and Atlanta, the Low Tier had the highest (or close to) peak but now lag behind the Mid and High Tiers and the Aggregate.