House Prices up 4.2% in 3 months Nationwide

baileysbattlebus

Graham_Devon wrote: »

So the mean figure is the agreed figure to use? Not the median, i.e. what most people earn?

Am I right here? As it will stop a lot of confusion in the future.

I always thought it was much better to look at what the majority earn, therefore can afford, rather than what a select number earn and what they can afford, but if this is the reason for a lot of confusion leading to arguments about house prices, i'd rather know which is the "acceptable method". May need a new thread or a poll though!

I don't want to nitpick but.....
Median is not what most people earn - median = Middle data point when data are arranged in order
Mode is the most common value
Mean is the sum of all values/total number of values.

Median will be used in salary values because it is not influenced by outliers at either end of the data set. The mean would be influenced by the top earners and lowest earners.
But it is not what most people earn - it is the mid point - there will be an equal number below and an equal number above it.

It works the same way for house prices - it would the mid point.

One of the reasons you see a difference between Nationwide average house price and Halifax average house price is because the "typical Nationwide house" is different to the "typical Halifax house". They each use different criteria when putting together a typical house. So they are tracking 2 different things. Although over time the results are pretty similar.

They couldn't use real houses as the mix of houses sold each month would mean the figures would be all over the place.

I think they'll use something like the geometric mean for working out the change in price each month, it's different from the arithmetic mean in that is calculated by multiplying all the numbers (call the number of numbers "n") and taking the nth root of the total.

Nothing is simple.

Graham_Devon

Right, so we shouldnt be using the mean point as I said

We shouldn't being using the median either, but the mode.

I have tried to find mean house prices, or median house prices, as I keep seeing people saying house prices are mean prices, therefore we should compare with mean wages.

But your post makes sense now....thats why I can't find these mean and median house prices, because they are mode.

So, I shall use the mode wage

Erm...anyone know the mode average wage!?

chucky

Graham_Devon wrote: »

Right, so we shouldnt be using the mean point as I said

We shouldn't being using the median either, but the mode.

I have tried to find mean house prices, or median house prices, as I keep seeing people saying house prices are mean prices, therefore we should compare with mean wages.

But your post makes sense now....thats why I can't find these mean and median house prices, because they are mode.

So, I shall use the mode wage

Erm...anyone know the mode average wage!?

this should help you as far as giving you an indication how house price indicies go Mr D
http://www.houseprices.uk.net/articles/house_price_indices/

mewbie_2

JonnyBravo wrote: »

I'm not sure if you're aiming this at me or not?

Garbage?

Why is it garbage?


I was trying to clarify data..... I'm sorry it's not to your taste.

<bites tongue

I'm sorry Johnny - I was so eaten up with anger that I don't actually know why I posted that there. I wanted to shove it up Chucky's @ss.

IveSeenTheLight

chucky wrote: »

this should help you as far as giving you an indication how house price indicies go Mr D
http://www.houseprices.uk.net/articles/house_price_indices/

Exactly, thus the LR results which "registers transactions, 100% of sales in England and Wales" and uses the mean method of calibration is an easy way to compare mean with mean salaries provided by the national statistics I provided a link to earlier

You'll see below, they all follow a similar pattern, just the offset is affected

Graham_Devon

LOL, look at nationwide on that graph compared to the others....and we actually use this as an indicator of recovery!

IveSeenTheLight

Interestingly, earlier in this thread, someone believe prices should be at £90k which would appear to be circa Mid 2001 according to LR.

I've superimposed a red linear line from 2000 to 2002 and extended to see where it is today.
Strangely, its not far off where we are today
Ok, it means nothing really, and I did underestimate the linear line, keeping it below the LR actual prices of 2002, but interesting anyway and kind of backs up the long term price growth shown by Nationwide.

ad44downey

These graphics are great but can we have chucky's graph now please? You know the one that conclusively proves that house prices are roaring ahead. He hasn't posted it yet today which is a shame

Dan:_4

ad44downey wrote: »

These graphics are great but can we have chucky's graph now please? You know the one that conclusively proves that house prices are roaring ahead. He hasn't posted it yet today which is a shame

Come on downey, be fair - I have yet to read a post by Chucky, or anyone else ,that suggest house prices are roaring ahead.

ad44downey

No, chucky's got a graph that proves they are, he posts it on the forum most days. Can you pop into the bedroom Dan and tell chucky to post it again. Thanks