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GRX

In La Bourse on January 14, 2010 at 1:29 AM

Introducing the Georgia Real Estate Index (GRX)!

Inside this GRX index, you’ll catch a one-stop snapshot of Georgia publicly-traded real estate firms via a 3-component market capitalization-weighted series, constructed from underlying institutions: Beazer Homes USA, Inc., Cousins Properties, Inc. and Post Properties, Inc., with information dating back from 2000:Q1 S.E.C. filings and stock market closing prices.

For reference, I have provided 3 graphs below glimpsing the index and its performance spanning 2000 to present. You can witness there-in a dramatic climb and collapse that rivals movement in U.S. Residential Fixed Investment (SAAR 2000 chain-weighted in billions) provided from the Bureau of Economic Analysis National Income Accounts — also, see below.

Lead-Lag interplay between the National-Georgia housing markets is also portrayed.

Interestingly, the U.S. investment variable, proxying the overall housing market, happened to peak in 2005:Q4; well before the Georgia real estate market peak, proxied by the GRX, which achieved its maximum level occurring in 2006:Q4, a full one year after the U.S. Residential Fixed Investment peak.

In similar fashion, the much-watched S&P/Case-Shiller National Home Price Index echoes the B.E.A. variable in trajectory; a point made clear by my former global finance professor Mikhail Melnik, Ph.D, at Georgia State University in June 2009.

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  1. Any update on the GRX….. I’m interested to see the updated version for the end of Q1 2010. Also, how are you reconciling equity price of local homebuilders and the actual home prices themselves. I think they could be two separate entities. The stocks are reflective of companies that can make profits and markets with either inflating or deflating home prices. Is it possible the correlation only works in ‘normal’ times?

    • Glad you liked this one. Under — Indices — on the homepage there is a provided data set with Q1 graphs.

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