Data researcher SQM is the latest organisation to brand RP Data Rismark’s Home Value index as “unreliable and inaccurate.”
SQM’s managing director Louis Christopher has questioned RP Data’s monthly report for June, which claimed capital city house vales had risen 1%.
“Their daily hedonic index, for which these claims are based on, is an unreliable index as it is based on a miniscule proportion of actual sales that happen on a daily basis. Effectively on a day to day basis, the index misses out on over 95% of sales. And since it is an unrevised index, it means those missing sales are never taken into account,” he said.
“I do not believe for a moment that house prices are now rising in Sydney or Melbourne as RP Data Rismark has claimed.”
While he admitted the monthly results are widely used in the industry, he warned the alleged ‘inaccurate’ data was damaging for policy-making.
“We are also aware that the RBA and other industry players do look at this daily index closely. So in other words, this daily index potentially can have an influence on interest rate policy setting,” he said.
Earlier this week, two local mortgage brokers in Hobart told Australian Broker that the suggestion Hobart house prices had risen 2.7% during the month of June was inaccurate.
Tassie Home Loan’s managing director Robert Brand said the result did not reflect what was actually happening in Hobart.
"They’re being ultra-conservative and pushing prices down. The median price moves up, which isn’t an indicator of real value…just lack of activity in the South. No one is seeing any increase.”
City growth data inaccurate, say local brokers