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Debate House Prices
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The Spring Bounce..... One for Graham.
Comments
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Come on Chuckles.
Your pal Hamish has "gone dark" again.
So its up to you to explain.
How exactly does the comparison of like for like properties assist in
taking out any skewing effects when tallying up the global overall averages.
You appear to be very confident in this one, so clearly you know the answer.
It appears as if neither Hamish or Chucky are compelled to attempt an answer to this one.
Why, its almost as if their nonsensical posturing had nothing to do with the point under discussion and there's now no way do dig themselves out.
Tee hee.0 -
martinbuckley wrote: »and I'm guessing that in a period where transactions are lreally ow, the likes of this being sold will have quite a significant impact on the "average" price of a house.
http://www.rightmove.co.uk/property-for-sale/property-33289916.html
You'd be guessing wrong.
The major indices mix adjust to specifically remove bias from mansions selling.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It appears as if neither Hamish or Chucky are compelled to attempt an answer to this one.
Why, its almost as if their nonsensical posturing had nothing to do with the point under discussion and there's now no way do dig themselves out.
Tee hee.
No geneer it's because you're a blithering idiot and no matter how many times it's explained to you, you just pop up with the same rehashed nonsense in another thread.
Tee hee.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
How exactly does the comparison of like for like properties assist in
taking out any skewing effects when tallying up the global overall averages.
It doesn't work like that geneer.
From the BOE's explanation:Constant-quality measures of house prices try to standardise, and make comparable over time, the information available in the data, to overcome the limitations of simple averages.
Three main methods can be used: hedonic regression; mix-adjustment; and the repeat-sales method:
• Hedonic regression. The price of a house depends on its location and its physical characteristics. Hedonic regression is a way of estimating the value the marketplaces on each of those attributes. The estimates are then used to construct the price of a synthetic
house with a representative amount of each characteristic.
• Mix adjustment. House price observations are grouped into sets or “cells” of observations on houses with similar location and physical attributes. For instance, the old ODPM index contained around 300 cells (the new ODPM index contains around 150,000 cells). The mean
prices in each cell are weighted together to give a “mix-adjusted” price. A change in the composition of the sample will alter the number of observations in each cell. But if the cells are defined sufficiently precisely, so that all elements of the cell have similar prices and price
trends, then such compositional changes will not systematically affect the mix-adjusted house price. The mix-adjustment and hedonic regression techniques can give very similar results if they control for the same house characteristics.
• Repeat sales. Both of the previous methods require a large number of dwelling characteristics to be recorded if they are to be reliable. In some cases this information is not readily available. Instead, there may be information on the history of transactions for a large
sample of dwellings, which allows us to examine the price changes of individual houses. Observing the sale prices of a given house at two points in time will give an estimate of general house price inflation between those two transactions“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No geneer it's because you're a blithering idiot and no matter how many times it's explained to you, you just pop up with the same rehashed nonsense in another thread.
Tee hee.
Riiiiiiiiiiight!
Of course, that will be the reason you disappeared from this thread to post pictures of icecream cones elsewhere.
And Hamish doesn't actually answer the question shocker!
Chortle.
The only thing Hamish hates more than having to exit a thread stage right is being called on it.0 -
HAMISH_MCTAVISH wrote: »It doesn't work like that geneer.
From the BOE's explanation:
Thats nice Hamish.
Doesn't actually answer the question though.
Lets revisit.
Stage 1.Is this the point where we explain to Hamish what an "average" is and what relevance this might have to people who don't have an "average" house in every area of the uk.
Stage 2. Respond to an apparently unrelated question.HAMISH_MCTAVISH wrote: »Is this the point where we have to explain mix adjustment and hedonic regression to geneer.....
Again.:eek:
STAGE 3:Come on Chuckles.
Your pal Hamish has "gone dark" again.
So its up to you to explain.
How exactly does the comparison of like for like properties assist in
taking out any skewing effects when tallying up the global overall averages.
You appear to be very confident in this one, so clearly you know the answer.
STAGE 4: Hamish Keeps "ghosted" away until his considerable ego gets the better of him.
STAGE 5: Hamish inexplicably returns to Stage 2.0 -
Anyhow thanks to good old Hamish:-• Mix adjustment. House price observations are grouped into sets or “cells” of observations on houses with similar location and physical attributes. For instance, the old ODPM index contained around 300 cells (the new ODPM index contains around 150,000 cells).
Ah. Similar locations and physical attributes.
Gosh. Its almost as if this method is chuff all use when looking at divergent locations with divergent attributes.
Which, and correct me if I'm wrong, is about where we were when Hamish came in to swing his big old internet persona around.:rotfl:
Whisper: Lets not mention that both pimperne1 and Chuckles did exactly the same thing without knowing really what they were talking about.0
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