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; an average of the 20 metro areas. Five of those cities, or a quarter of the group, are in California and Florida, states hard hit by the real estate bust. Other cities house purchasing, home buying, home values, home prices, case shiller indexer in real estate bubble areas like Las Vegas or areas of chronic economic decline like Detroit. All in all, the index is tilted toward cities near the coasts that tend to have volatile house prices, as opposed to areas in the middle that tend to have more stable home prices, like Kansas City or Wichita.
The index is just an average. Like any average, it’s an interesting number for conversation, but not much use for home buyers. You can drown walking across a pond with an average depth of four feet. The average doesn’t tell you there’s a 10-foot drop in the middle.
Home prices in certain hard-hit areas can drag down the average figure. Think Florida condominiums. Condos tend to be more susceptible to overbuilding and price co...
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