patrick.net

Or put more politely (per S&P/Case-Shiller Home Price Indices Methodology):
The most typical types of non-arms-length transactions are property transfers between family members and repossessions of properties by mortgage lenders at the beginning of foreclosure proceedings. Subsequent sales by mortgage lenders of foreclosed properties are included in repeat sale pairs, because they are arms-length transactions.

Darrell, foreclosures are, by their nature, cash sales (in some cases you may be able to get a hard money lender to back the purchase). They are in no way related to open market sales which allow the use of conventional financing.
REO (bank owned property) sales, which are included in the C/S Index, allow an apples to apples comparison with what the home sold for previously on the open market.

robertoaribas says

I'm going to put you on block. It is a waste of time to talk to someone as ignorant as you...

Roberto,

Do put him on block. He's not ignorant, he's a troll. He gets a kick out of it when you try to argue with him. Just "ignore" him and be happier for it.

Darrell In Phoenix says

Stop you're lying.... stop being cowards.

Buying into the hype isn't lying. :)

Defaults & REOs have never been part of the CS index.

From 2006-2009 when the CS index fell precipitiously, defaults & REOs were not included.

From 2009-2012 when the CS index largely stagnated, defaults & REOs were not included

Moreover, from 1987 to 2006 when the CS index rose, defaults & REOs were not included. Are we thus to conclude that prices were falling during this 19 year period as well?

robertoaribas says

I'm going to put you on block. It is a waste of time to talk to someone as ignorant as you...the sad part is, if you weren't so stupid you could learn something from the discussion... but it is what it is you are a complete idiot.

Hi Roberto. I went to Berkeley too, but I guess I missed the class where they taught you how to be a bragging, arrogant SOB. Was, this, by chance, offered through the math department?

By Robert Shiller's own admission.

http://www.businessinsider.com/robert-shiller-housing-may-have-bottomed-2012-8

"But you know we have lots of clouds on the horizon too."
The dreaded "but." Some of the clouds he pointed to were the problems at Fannie Mae and Freddie Mac, which is propping up the housing market and supported by the government. He also made reference to the key macro issues like the eurozone crisis, the slowdown in Asia, and the oncoming fiscal cliff in the U.S.

http://www.bloomberg.com/video/shiller-says-don-t-buy-a-house-just-for-investment-nXSc8TnVRMa26VKK_koGDQ.html

CDon said: Defaults & REOs have never been part of the CS index.
The foreclosure is not included, but REOs are. Directly from C/S Methodoloy Subsequent sales by mortgage lenders of foreclosed properties [aka REOs] are included in repeat sale pairs, because they are arms-length transactions.

robertoaribas says

Yes we do have a lot of dangers out there. But put another way, there has never been a time in history when there weren't clouds out there. Arguably the best time to buy a home in history was at the depths of the great depression, if you could afford it. the best time in history to start a business too, you could get all the materials super cheap...

Ben talks about being an expert on the great depression. He never said he was on the side of the middle class. Beware of bennies from the fed.

Robertoaribass sounds a little shrill .. I think he's finally learning the lyrics to the song though:

"It's time to play the music
It's time to light the lights
It's time to meet the muppets
On the the muppet show tonight
It's time to put on makeup
It's time to dress up right
It's time to raise the curtain
On the muppet show tonight"