Government investigates house price indices

Graham_Devon

http://www.ftadviser.com/FTAdviser/Investments/AssetClass/Property/News/article/20100817/4e7e2986-aa02-11df-9e1f-00144f2af8e8/Government-investigates-house-price-indices.jsp

Apparently, it's all too confusing.

Stuart Law, chief executive at Assetz, said the differing pictures produced by monthly house price indices frequently offered a confused picture of the UK property market.

He said: "This is especially true at times of major price correction, when contradictory patterns of positive and negative growth emerge between the indices, as seen several times during the recent recession.

"Property is an illiquid asset and minor monthly fluctuations recorded by a specific organisation cannot be generalised to the sentiment of all homebuyers.

"Even seasonal adjustments recorded by some of the major indices can provide a basis for volatility between the different monthly figures, as these are set at the discretion of the organisation that produces them, leaving room for semantic and political decision making to impact on the data."

I suppose I can see the point being made. One minute prices down, the next minute prices up, all based on different data.

chucky

Graham_Devon wrote: »

http://www.ftadviser.com/FTAdviser/Investments/AssetClass/Property/News/article/20100817/4e7e2986-aa02-11df-9e1f-00144f2af8e8/Government-investigates-house-price-indices.jsp

Apparently, it's all too confusing.



I suppose I can see the point being made. One minute prices down, the next minute prices up, all based on different data.

they are what they are and are a pretty good indicator of house prices unless house prices are rising of course.

Really2

Graham_Devon wrote: »

http://www.ftadviser.com/FTAdviser/Investments/AssetClass/Property/News/article/20100817/4e7e2986-aa02-11df-9e1f-00144f2af8e8/Government-investigates-house-price-indices.jsp

Apparently, it's all too confusing.



I suppose I can see the point being made. One minute prices down, the next minute prices up, all based on different data.

Why don't the government look at the one done by the land registry.
It may have a delay but contains the most data, so should be the most reliable. (it does not have cash or repo sales in but they are not classed as typical transactions)

Graham_Devon

Really2 wrote: »

Why don't the government look at the one done by the land registry.
It may have a delay but contains the most data, so should be the most reliable. (it does not have cash or repo sales in but they are not classed as typical transactions)

I believe the land registry will be one of the first to be looked at:

The ONS review will initially focus on house price indices published by the government which should be completed by the of this year.

Not sure what they are actually looking at, mind.

Generali

That most of the time, most of the indices seem to be going in much the same direction (time lags notwithstanding) I reckon that the statisticians producing them make a pretty good fist of things.

Rightmove is a bit ropey but then it's measuring something a bit silly so GIGO.

chucky

Really2 wrote: »

Why don't the government look at the one done by the land registry.
It may have a delay but contains the most data, so should be the most reliable. (it does not have cash or repo sales in but they are not classed as typical transactions)

they are, it's not all house price indicies - unfortunately Devon missed this bit, they also take their info from the same data but use different methodology to calculate

has prompted the goverment to review its two major house prices indices, according to the National Statistician.

and this bit

The ONS review will initially focus on house price indices published by the government

but it really is quite simple to understand - they all provide different information that at the end of the day correlate quite closely

The issue raised is that most of the indices record house prices at different stages of the home-buying process, ranging from asking prices when a property is first put on the market to the price paid

Graham_Devon

I missed it? I've highlighted it.

Not my fault if someone jumps in before reading an article.

Really2

Graham_Devon wrote: »

I missed it? I've highlighted it.

Not my fault if someone jumps in before reading an article.

Not jumping in GD, All I am saying is if you look at one index (LR) it is not confusing. (as per your original point)

You where saying

I suppose I can see the point being made. One minute prices down, the next minute prices up, all based on different data.

I did not read it as you threw that spanner in TBH. I trusted you had read it.

Graham_Devon

Oh I see, have we got to have an argument about it? Is that what this is about?

You didn't read the article, said something, I pointed out that they are doing that, chucky states I missed that part, and now you state I was throwing spanners in the works by adding my own thoughts on to the end of the article.

Well, fair do's, let's argue. Anyone know what the argument actually is?

chucky

Graham_Devon wrote: »

Oh I see, have we got to have an argument about it? Is that what this is about?

i don't think that's the case at all - you missed the key info in your initial post, you've been corrected and that's it.

it seems that you're the only one looking for an argument.

but let's leave that because the 'argument' isn't important. it's the house price indicies and the government review, let's discuss that...

how do the government indicies use different data?

Graham_Devon wrote: »

One minute prices down, the next minute prices up, all based on different data.

Graham_Devon

chucky wrote: »

i don't think that's the case at all - you missed the key info in your initial post, you've been corrected and that's it.

it seems that you're the only one looking for an argument.

but let's leave that because the 'argument' isn't important. it's the house price indicies and the government review, let's discuss that...

how do the government indicies use different data?

It's going to look at ALL the indices, not just the government ones. That's just where they are starting.

Please. Read the article.