Rpdata still going up - why?

Discussion in 'Property Market Economics' started by icic, 16th Apr, 2020.

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  1. icic

    icic Well-Known Member

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    It's been a month since almost everything has been going pear shaped except for the likes of Coles and Wolworth. I have been tracking rpdata index from time to time and looks like the index has been tracking upward like business as usual and I am rather pazzled. The index surely don't lag for a month right? I remembered when the scomo won the election the index trucked up almost immediately within days. Can anyone logically explained why rp data index is still moving upwards?
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lag

    data is from sales 90 to 180 days contract date

    ta
    rolf
     
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  3. Jana

    Jana Well-Known Member

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    The same question I had. How reliable is that?

    Mid of 2019 it went pretty quickly within week. Now the sales are generally 5% down everywhere but it shows up.
     
  4. icic

    icic Well-Known Member

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    but that is contradicting the the quick recovery with the coalition win. Are you sure it's not the sale value at the time sale and not contract date? If the data lags 3months, there's no point of daily index.
     
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  5. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    Consider the source of RP Data's information. A lot of it initially comes from auction results where agents publish them, but this isn't entirely reliable.

    The best data is from the Office of State Revenue. This is verified after settlement, usually within 30 days (when the stamp duty is paid). The settlement is often 60-90 days after the contract is signed.

    Thus it's not uncommon for the data to be 90 days old or more by the time it's included in the RP Data results.
     
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  6. zagi

    zagi Member

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    There is no lag with their price data as it reflects currently signed contracts (assuming you're referring to Corelogic daily index).

    The most likely reason is that both supply and demand for properties have fallen by similar amounts. For prices to fall, demand needs to fall by more, but in current conditions people are not putting properties on the market.

    Also, I wouldn't trust daily price index anymore because it's being generated on a very small sample (i.e., how many properties sell per day now?)
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Nah, specifics......RP data AVMs not the index

    Additionally, valuers will only used settled sales, whereby in the past could use reported sales

    ta
    rolf
     
  8. Waterboy

    Waterboy Well-Known Member

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    STALE NEWS
     
  9. DueDiligence

    DueDiligence Well-Known Member

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    House in our area, Camp Hill Brisbane, 15% drop in price , been listed 6 weeks.

    Haircuts are on.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Bugger all stock too

    ta
    rolf
     
  11. zagi

    zagi Member

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    Thanks for clarifying - would you mind flicking a link? I confused it with Corelogic daily home value index. What do AVM data show?
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Its a subscription product and until 2 or 3 years ago was around 23 k a year for our team

    I believe u can get public access for less than 200 a mth

    ta

    rolf
     
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