The aim of this paper is to show that there are clear advantages in forecasting overall market trends and in policy analysis in treating the US housing market as homogeneous. This study differs from the traditional approach and other studies that attempt to deal with US house prices in a significant way. In these studies there is no nationwide housing market, but a compendium of segmented markets. In fact, most, if not likely impact on the overall economy. In this paper we focus on the methodology and the modelling aspects of treating the US housing market as homogeneous and its implications.