Missed this one yesterday. SQM Research has revealed via the AFR that it will shortly release a new vendor asking price index that will track housing market sentiment by tracking how optimistic sellers are about selling prices.
SQM will monitor a number of major real estate classifieds websites, and chart the confidence levels of home owners by comparing their asking prices over time, regardless of whether homes are selling.
According to SQM Managing Director, Louis Christopher, “It’s going to tell us whether vendors are lifting market prices in response to stronger market conditions or lowering them in response to weaker market conditions”.
SQM will employ statistical methods such as stratification and hedonics to ensure that comparisons only take place between similar types of houses, thus avoiding compositional bias.
The index will be posted free on the SQM Research website at the national, capital city, and postcode levels.
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
