It’s been almost two years since we first looked at Google’s Real Estate Index, and I thought it was past time for another visit to this particular data set.
To save you the time it would take to re-visit the old post, here’s Google’s description of what they’re doing:
The Google Real Estate Index tracks queries related to “real estate, mortgage, rent, apartments” and so forth.
In order to limit the data to the United States only, I went to the more-detailed data set at Google Insights for Search. Here’s what it looks like when you plot Google’s real estate search activity (12-month rolling average) next to Case-Shiller’s 20-city composite index, with both indices re-indexed to January 2005 = 100:
Home prices haven’t tracked search activity all that closely in magnitude, but the direction of the two seems to move together fairly nicely. I think it’s interesting to note that search interest in real estate still apparently hasn’t bottomed.
Just another data point that seems to indicate that we haven’t seen the bottom yet…