House Prices up 4.2% in 3 months Nationwide

IveSeenTheLight

ad44downey wrote: »

No, chucky's got a graphi that proves they are. Can you pop into the next room Dan and tell chucky to post it again. Thanks

I recall chucky's graph.
He posted it after someone asked to see the Nationwide graph starting from only 2 months ago.
He did what he was asked and now he is slated for it.

some people just have no humour

System

Ironically it's the same graph as downey posted every day when it showed drops.

StevieJ

IveSeenTheLight wrote: »

I recall chucky's graph.
He posted it after someone asked to see the Nationwide graph starting from only 2 months ago.
He did what he was asked and now he is slated for it.

some people just have no humour

It is only Downey

baileysbattlebus

If you really want to know the methodology for the Halifax and Nationwide - they both use the same analysis. It's the typical house that's different.

here goes - bit of light reading on a Tuesday evening

Methodology
The methodology is based on the 'hedonic' approach to price measurement
characterised by valuing goods for the attributes they possess. In the case of
housing, prices will reflect the valuation placed by a purchaser on the
particular set of physical and locational attributes possessed by the property
they wish to buy.

Prices are disaggregated into their constituent parts using multivariate
regression analysis. This permits the estimation of the change in average price
from one period to another on a standardised basis. An obvious analogy can be
drawn with the standard basket of goods used for calculating the retail price
index.

So, observing a set of house prices, Pi , (i=1,2,...,n), in time period (t) in
which each house (i) is sold. Price differences in these properties will be due
to differences in qualitative characteristics (type of property, region, etc.)
and to differences in quantitative characteristics (age of property, number of
habitable rooms, garages, bathrooms, etc.). For each house, i, we can represent
the price, Pi , as a function of these characteristics Xij , along with a group
of unmeasured (and randomly distributed) factors, ei . Mathematically, this
relationship can be expressed as

Pi = b0 + b1X1i + b2X2i + ... +bjXji + ei

where b1 ,b2 , ... ,bj are the regression coefficients associated with the
qualitative and quantitative variables Xij .

The regression coefficients are estimated using the technique of ordinary least
squares. These coefficients indicate the relative importance of the variables in
explaining the variation of house prices in any one time period t.

The average price for any set of houses in any period will depend on the number
of observations on each characteristic in that period. Standardisation allows
for the varying mix of characteristics between different time periods and is
achieved by applying a representative set of weights corresponding to the
numbers of each characteristic observed in a base period. For the Halifax House
Price Index this has been chosen as 1983. The index numbers represent the
movement in average prices for houses possessing the same characteristics as those bought in 1983 and are calculated by comparing the weighted (i.e mix-adjusted) prices in each current period with the weighted average price in the base period.

The steps involved in establishing the Index are
Calculate the weights, Qj1983 : the proportions of the qualitative variables and the means of the quantitative variables present in the base period (1983). With price recorded in natural log form, use the technique of least squares to estimate the regression coefficients bj for the j explanatory variables (in both the base period (bj1983) and for every subsequent time period t (bjt)).

Calculate the base-weighted index for the current period (It)

It=antilog....................

Summation is carried out over all variables included in each regression.

This procedure is used to calculate five monthly series of base-weighted index numbers covering

· all houses (seasonally adjusted)
· all houses
· new houses
· existing houses
· houses bought by first-time buyers
· houses bought by former owner-occupiers

Index numbers for each of the twelve standard statistical regions are calculated
quarterly for

· all houses (seasonally adjusted)
· all houses
· new houses
· existing houses

nearlynew

Can somebody please tell me why high house prices are a good thing?

Pixulated

I hope you are telling lies because I need cash to buy a house... please let this not be true.

IveSeenTheLight

nearlynew wrote: »

Can somebody please tell me why high house prices are a good thing?

Why not start a new thread instead of asking the same question across the threads?

http://forums.moneysavingexpert.com/showpost.html?p=22097207&postcount=7

Graham_Devon

IveSeenTheLight wrote: »

Why not start a new thread instead of asking the same question across the threads?

http://forums.moneysavingexpert.com/showpost.html?p=22097207&postcount=7

Good work detective!

IveSeenTheLight

Graham_Devon wrote: »

Good work detective!

LOL, I wasn't playing detective, I answered on the other thread and then read this one to see the same question posted.
Just some helpful advise.

Graham_Devon

IveSeenTheLight wrote: »

LOL, I wasn't playing detective, I answered on the other thread and then read this one to see the same question posted.
Just some helpful advise.

I know, but no ones really been able to answer the posters question with a hint of actual fact or decent reasoning.