In what could be the funniest, and most telling article we have read for some time, members of the Oz real estate industry were pleading with the RBA back in May not to believe the steaming piles of horse cr*p the industry has been shovelling at the public since the dawn of time.
Veteran property analyst Louis Christopher of SQM Research says official auction clearance rate data is masking the true state of the slowdown in Australia’s housing market, and argues the RBA must be careful when considering clearance rates in its interest rate decisions.
While official figures from Australian Property Monitors suggested the clearance rate in Sydney increased on the weekend from 60.7% to 63.2%, Christopher says the real clearance rate was more like 54% when unreported auctions results – particularly those sales campaigns that fail – are included.
So the statistics are made up then ?? No, it cannot be true. Surely those young people need to indebt themselves to the eyeballs, because if they don’t get in now, they never will.
Christopher says all reporting bodies, which include private groups and real estate industry bodies, suffer from some level of reporting problems, such as including private treaty sales in auction data, counting houses sold weeks after an auction in the clearance rate and being unable to get auction results from agents.
Christopher’s “adjusted” clearance rate attempts to include unreported results, including the many properties that are failing to sell.
While data problems can make things hard from house hunters and investors, Christopher is more concerned about the impact on the Reserve Bank, which has specifically cited strong clearance rates in recent rate rise decisions.
Oh Oh ha ha ha ha.. LOL LOL ..
While the going is good; please accept our lies as the truth. But when the RBA is threatening to cut-off the blood supply and the stinky stuff starts to hit the fan, then it is time to ignore us because our data may not be that accurate.
We don’t want to be too harsh on SQM because they do actually produce some good services, but seriously have they never read ‘the boy who cried wolf’. Where is ASIC or any other regulator on this one ??
Seriously, we can’t stop laughing!!
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