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All-States Price Index Update – 24/12/2011

December 24, 2011 Leave a comment

Hi all,

It’s been a little while since I’ve posted, so I thought I would throw something out there into cyber-space, to let you all know I am still on-the-go.

So, here’s a short something to wet your whistle…

I don’t have data for actual sold-price, which is what all the media-reported indices are based on (and rightly so!), and is the stuff that you have to pay through the nose to get your hands on, one way or another. However, I do have ready access to Vendor/Listing price data, so that is what I use.

It can probably be used as some sort of leading or lagging indicator of the various sold price indices; it will always be inferior, and, I haven’t figured out yet whether it is leading or lagging…that will probably require getting my hands on some RPDate, ABS data, etc, and plotting them together, to see if there is any relationship, and how strong it might (or might not) be.

Nonetheless, below is a chart I’ve put together of the Trimmed Price Index (for short) for all of the states…or, for long, The Trimmed Weighted Average Vendor Sales Price Index.

“Trimmed” means I have manually removed the first and last price categories from the raw realestate.com.au data.

Why, you may ask? Because they are full of rubbish…everything that wasn’t entered properly by agents seems to find its way into either the lowest bracket ($0-50K) or the highest bracket ($10,000K+).

There is an untrimmed version, and there is also another type of price index I now use, called The Calculated Median Price Index – but  I have not developed an all-states chart for either of those yet.

However, just so you get an idea of how the different/similar indices I have developed for Vendor Price tracking are, please find below the time-trends for NSW, ACT and VIC.

I hope that was somewhat interesting.

Regards,

Stewart

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