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Timm

Comparing Indexes

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Sorry if I've posted this before, but it is very good. The best bit is the comparison grid on page 11, but for some reason I can't copy that. The text below is the longwinded way of displaying the same information.

http://www.acadametr...x%20Monitor.pdf

4.3 Different house price data; different windows

Indices measure different prices, based upon different data, but each provides an important window into a particular facet of the housing market. Thus:

Rightmove provides asking prices for a large sample of properties offered on their website. In telling us the prices at which the public and the estate agents would like to sell the properties on offer, the index might be thought of as a confidence measure. It reports market sentiment, often before buyers reach the mortgage lenders

Hometrack provides estimated values, collected by survey. The index tells us what their panel of c.6,000 estate agents thinks is the "achievable price for each of the four property types in every postcode district". These prices are weighted according to the housing stock. The results suggest that the index reflects a degree of caution. The contrast between the Rightmove and Hometrack prices e.g. as at December 2009 is of interest

Halifax and Nationwide report surveyor mortgage offer valuations taken from the monthly sample of properties upon which they are offering loans. The lender indices can act as lead indicators but, as noted by the Bank of England, are most useful when they move together. We note that the lenders agreed as to trends on only 4 of the 12 months depicted on our % Monthly front cover chart. When loan levels are low, small data samples make the lender indices subject to volatility. Nevertheless, when both move in the same direction, an important inflation trend is likely to be indicated

CLG provides mortgage completion prices based upon a sample of circa 60% of mortgages. The index takes the longest to market but does not require significant updating. Employing some 60% of mortgage completion prices, it uses a final price data set second only in size to that of Acadametrics. CLG is the primary source of detailed housing and house price data

The LR index employs a repeat sales sample of LR transacted prices. The LR 1st published % Annual result normally tracks AcadHPI "forecast" % Annual at national level, based on c. 30% of c. 35% of c. 60,000 = c. 6,300 sales (4.8).

Acadametrics ultimately employs every transacted price from LR, but the first AcadHPI result is forecast. Like the S&P/Case-Shiller index, AcadHPI at all geographic levels, is smoothed over three monthly periods, such as to treble the data employed and minimise volatility

Index Monitor.pdf

Index Monitor.pdf

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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