They use a reduced form equilibrium model to explain changes in house prices by variables such as nominal interest rate, changes in consumer price index, and transactions volume.
As a final element of the always a winner forecasting model, it is useful to look at inflation indicators like the consumer price index and the producer price index.
In many countries, employment contracts, pension benefits, and government entitlements (such as social security) are tied to a cost-of-living index, typically to the consumer price index.
