RP Data-Rismark has hit back at criticisms over the accuracy of its Home Value Index June data.
This week, SQM released a statement questioning RP Data-Rismark’s methodology, particularly the data showing a 1% increase in value of Melbourne properties.
RP Data-Rismark’s research director Tim Lawless and CEO Ben Silbeck were quick to discount the allegations.
“This claim is wrong. Markets do not follow a straight point to point trajectory in any direction. They do, however, demonstrate natural volatility and seasonality as they traverse their path," Silbeck said.
"Prior to the daily RP Data-Rismark index, these daily market movements were not observable in the Australian residential property market,” he said.
“A movement of 1% or 2% over the course of a month is negligible when compared with the movement in the stock market over a similar period. For example, even in a market which is declining it is possible to find periods where it is possible to have traded in and out at a profit.”
RP Data-Rismark reiterated the importance of its data for key industry bodies.
“We would presume these groups use our measure of housing market conditions because they are the timeliest and most accurate measures available,” he said.
The June report has been causing ripples throughout the industry with its findings of a 1% increase in value across all capital cities.
Some industry figures were surprised there was any growth at all, in what has been a difficult period for the housing market.