House prices: what do other indexes show? | money

EThat same month, several organizations publish house price indices based on different data sets. Sometimes the results agree and sometimes conflict. When we reported these figures we explained what they show, but thought it would be useful to provide a comprehensive guide to the state index.

Anyone who buys and sells real estate, works in the real estate industry, or is interested in the ups and downs of the housing market, can help you figure out who is producing each index, what data is used, and what really matters. irradiate.

Tell us what you think about other indices on the Housing Prices blog.

Click below to see other indices.
Halifax
Land registration
LSL Real Estate Services / Acadametrics
Nationwide
Statistical Office
Rightmove
Royal Institute of Chartered Surveying

Who compiles? Halifax is now part of the Lloyds Banking Group and one of the UK's largest mortgage lenders.

What do you show? The average price agreed on real estate purchased using Halifax mortgages and monthly and yearly price changes. Quarterly surveys show regional data.

What areas are you dealing with? All over the UK.

What time period does it cover? Full month: from first month to last day.

What is it based on? Mortgage approved by Halifax.

How long have you been? Halifax began publishing data in January 1983, but the index in its current format began in April 1984.

Is that so Seasonally adjusted? Yes.

What's different about raw data? Halifax "standardizes" the numbers to track the price of "normal homes" instead of comparing the prices of one set of homes with another set of homes a month. Use it to provide values ​​and calculate prices for specific properties of the property you are buying, such as the number of rooms, the amount of central heating, and whether there is a garden. This is called "hypertension method". For annual price changes, we use the average price over the last three months and compare it to the average over the same period of the previous year. More information is here (A4 article).

Why should you believe? Halifax is one of the UK's largest lenders and has been polling the same way for almost 30 years.

Why should you be skeptical? Halifax is trying to solve the unusual problem, but critics say data may be distorted in a few months when transactions are small, and that banks' historical northern bias may not reflect typical British homes.

Who compiles? The Land Registry is a government department that registers and records details about land and property ownership in the United Kingdom and Wales. I actually use Calnea Analytics to actually compile the data.

What do you show? Average requested price of real estate purchased last month – the price at completion and includes the price of cash purchases and mortgages. It also reports annual and monthly price changes.

What areas are you dealing with? England and Wales.

What time period does it cover? Calendar month.

What is it based on? The price paid for home sales in the UK and Wales is completed for a month and reported to the Land Registry. About 35{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} are usually reported by the end of the month.

How long have you been? Added data back to January 1995 since 2005.

Is it seasonally adjusted? Yes.

What's different about raw data? Real estate that has not been sold more than two times since 1995 has been removed from the sample. Land Registry has a slightly more than 6m matching pairs of identifiable numbers, and this index is based on iterative sales regression methods. As of April 2000, the average price is taken as the base price, and the growth measured during each period is applied to generate the current average price. Learn more here (pdf).

Why should you believe? According to the Land Registry, this index is called "the most accurate independent house price index. With completed sales data, the only index based on recurring sales" is called. It is the only product based on the final price achieved for mortgages and all other sales and real estate.

Why should you be skeptical? Like other things, it's seasonally adjusted. It does not reflect the price paid for new real estate or the price remaining in the same hand for a long time, so less than 35{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of the reported sales are actually used. The index is revised every month due to the time delay between completion and registration. This is very powerful after all, but it means that you're dealing with figures that will change slightly.

Who compiles? Acadametrics, a consulting firm that specializes in risk assessment of real estate and mortgage portfolios, targets LSL, a real estate company that owns real estate agencies and surveyors.

What do you show? Average price of real estate purchased and registered at the land registry for the past month. Shows monthly and yearly changes and sales counts.

What areas are you dealing with? England and Wales. Separate indexes for Scotland are based on the Scottish Register.

What time period does it cover? Calendar month.

What is it based on? that much Housing price data for land registers.

How long have you been? It was September 2003 (originally the FT House price index), but data back to 1995 was added and sent back to 1989.

Is it seasonally adjusted? Yes.

What's different about raw data? Land Registry collects all data about sales reported for a month, including sales completed in the previous month, and calculates the average price. These are given to Acadametrics and are mixed to provide an average price that is not distorted by the change in the type of real estate sold monthly. It is reported at the end of about one third of the month's completed sales, so we use the "index index" model to calculate the figures at the beginning of all sales.

Why should you believe? This is based on big data sets and refers to the sale of finished products financed by mortgages and cash, including new real estate and old homes. The "index index" calculation allows you to get more up-to-date information than the land registry.

Why should you be skeptical? At the beginning of every sale it can change and the figures for the previous month are updated every month.

Who compiles? One of the UK's largest architectural societies and one of the largest mortgage lenders.

What do you show? The average price agreed on real estate purchased using a national mortgage and monthly and yearly price fluctuations. Quarterly surveys show regional data.

What areas are you dealing with? All over the UK.

What time period does it cover? On the surface, it's a month, but it's always posted before the end of the month, and Nationwide doesn't give a date claiming that the information is commercially sensitive.

What is it based on? Mortgage in Nationwide's approval stage after evaluation is complete. Nationally, its share in the recent total home buying market has reached about 10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}.

How long have you been? Society changed its methodology in 1993, but there are quarterly numbers dating back to 1952 and monthly numbers dating back to 1991.

Is it seasonally adjusted? Yes.

What's different about raw data? Several types of real estate are removed, including buy and buy real estate, and there are very small or large houses (there are specified limits for each type of real estate). The society then “mixes and adjusts” the price to pay for the “typical housing”. The system reviews factors such as location and number of bedrooms and correlates them with the sale price of the house. From this, the model can estimate, on average, how much the cost of housing is given, given a set of values ​​for these characteristics. Learn more here (pdf).

Why should you believe? Nationwide, the index says it can cope with a small number of transactions. "Similar to the Halifax method, but after the census data was released in 1991, we significantly updated the system in 1993. These improvements make our system more powerful for smaller sample sizes, and better identify our representative home prices and Tracking. "

Why should you be skeptical? Like the Halifax critics, typical houses are used, but the number of transactions is low and the southern bias of society says data can be distorted in months.

Who compiles? Formerly a community and local government department, now the Office for National Statistics, the official data collector of the government.

What do you show? Annual and monthly changes and average completion prices for real estate in the UK. Data is broken down by region, property type, and buyer type.

What areas are you dealing with? All over the UK.

What time period does it cover? There is a full month, but there is a delay-the figures for March are published in May.

What is it based on? Data obtained from a sample of real estate sales provided by a mortgage lender, accounting for about 65{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} -70{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of homes purchased with mortgages. When there were an average of 85,000 home purchases per month in the UK, about 50,000 lenders were supplied by about 60 lenders a month in 2007. From 6 months to June 2011, there were an average of 37,000 loans a month for home purchases, with 26 lenders providing information on about 21,600 sales.

How long have you been? Since February 2002.

Is it seasonally adjusted? This index includes both seasonally adjusted and unmodified figures.

What's different about raw data? It is "mixed and adjusted" so that if many apartments are sold a month in the southeast, then many four-bedroom homes in Scotland are not skewed. Different properties of each property are given a value / weight, which is supplied by the average house model. This value is based on the transactions performed in the last three years. For example, 2012 weights are based on transaction numbers for 2009-2010.

Why should you believe? Because it is based on data from many mortgage lenders, unlike most other lenders it is not seasonally adjusted. ONS said it is one of the major housing price indexes used by central and local governments to support UK decision making.

Why should you be skeptical? When DCLG still managed indexes "House prices and the rate of increase in home prices in the high priced regions (currently in the south) where total spending on home purchases are highest. The regional fluctuations in home prices, as determined by the DCLG index, indicate that Are more affected (ie single-family home demand). "

Who compiles? Rightmove a website that advertises real estate sold by 90{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of UK real estate agents.

What do you show? Average demand price for the property marketed over the past month and the percentage change in that price over the month and year.

What areas are you dealing with? England and Wales.

What time period does it cover? Until the second Sunday of every month – it can take four to five weeks depending on how your calendar falls. The figures for March are measured on the second Sunday of March.

What is it based on? Newly registered home prices on the website – In the general reporting period, Rightmove says it will generally be 30,000 to 40,000 real estate or about 120,000 real estate per week.

How long have you been? The record began in August 2001. The report began in August 2002.

Is it seasonally adjusted? no.

What's different about raw data? Within each region, properties that require a price, which is three standard deviations above or below the mean, are removed from the calculation. This can be thousands of homes. For example, if more apartments are sold than homes in a month, the data will be mixed and distorted. This value is used to calculate the average country price.

Why should you believe? According to Rightmove's survey, "generated from real data on the real prices of real estate currently on the market." The sample contains about 90{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of the market, which is "the largest and most recent monthly sample of UK market price indicators."

Why should you be skeptical? Rightmove acknowledges: "This is not a final sale price reported to the real estate or property register recorded by the lender during the mortgage application process, but rather reflects asking for the price when the property is first released to the market." Real estate prices may vary.

Who compiles? Rics, a surveyor's trading agency.

What do you show? How investigators think the real estate market is behaving in the area.

What time period does it cover? Calendar month. Surveys are sent out on the second week of each month and are accepted by the end of the month.

What is it based on? Response to monthly surveys of 450-500 surveys (usually 250-300 responses). Ten questions are asked about changes in prices, sales and interest rates over the past three months and what is expected to happen next year. It also demands a definite figure on the number of houses sold and the number of houses for sale.

What areas are you dealing with? England and Wales. Information is collected from 10 locations.

How long have you been? Since January 1978.

Is it seasonally adjusted? Yes.

What's different about raw data? Weighted by region using long-term averages based on land registration figures. If an area represents 10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of sales, then the response in that area is weighted to represent 10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of Rics' overall figures. Instead of telling you how many surveys you think the price will go up and how much you think the price will fall because you're tidying up the numbers to achieve a net balance, if the index predicts the rate of increase, subtract 10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} I think the price will rise but I think 20{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} will fall and -10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} will fall. That doesn't mean a 10{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} drop is expected.

Why should you believe? The figure showing the number of real estate on sale and the number of buyers to sign up can give a good idea of ​​what's going on in the housing market.

Why should you be skeptical? Because the rest is based on emotion.

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