Major methodologies used to construct home price indexes include: median sales price approaches based on arms-length transactions; repeat sales models tracking appreciation of individual properties; and hedonic models accounting for property attributes. Index composition varies based on factors like specific property types included (e.g. single-family homes, condos, new construction), geographical coverage, types of transactions incorporated, weighting schemes, and segmentation methods. Sophisticated statistical techniques are utilized to process raw housing transaction data and derive final index values.
