New method for house price indexes could revolutionize real estate markets.
The SPAR method is a simple way to create house price indexes by comparing transaction prices and previous appraised values. In New Zealand, this method has been used since the 1960s to make price indexes for different regions. When compared to other methods, the SPAR method gives similar results and has more advantages than disadvantages. This suggests that the SPAR method could be a good option for making house price indexes in other places too.