RP Data-Rismark defends its Home Value Index

by Caroline Dann06 Jul 2012

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.
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  • by peter vella 6/07/2012 4:46:07 AM

    This crappy piece information contributes to about 60% of lost home sales between Harvey Bay,Bundaberg through to Agnes Waters,unreliable garbage which clients consistantlly full foul on yet some propertys sell as much as 30% more than indicated by an absurd service and 90%of customers calling and upset,life is made difficult with this inconsistant and 101 disclaimer service,AVOID WHERE POSSIABLE..

  • by John Moore 6/07/2012 11:31:50 AM

    Problem is that median prices can be skewed by a temporary demand for higher median priced property for a period of time. This could be caused by a higher priced development selling in the area or more sales in an upper price bracket. It will require some analysis but certainly worth a some analysis. The trend over several months can certainly indicate better the market direction.

  • by Ken Feltham 6/07/2012 12:25:27 PM

    Probably one of the more fatuous arguments I have seen. To compare movement of the stock market with property markets is indefensible, where is the research showing a nexus between the market sectors
    The argument ignores the generally accepted idea that property prices are "sticky". It also seems to proceed on the premise that property markets are efficient and reach some form of equilibrium and are not path dependent.
    It always amazes me how academics or economists with probably little practical property market experience are able to model and discern markets.