CoreLogic’s daily index rockets

Check out today’s daily index from CoreLogic, which has posted massive rises across both Sydney and Melbourne:

That’s right, Sydney’s prices rose by 0.45% today and Melbourne’s by 0.44%, with the 5-city index up 0.30%.

Accordingly, quarterly growth has now also turned positive.

Comments

  1. While a daily property index will have ‘noise’ in it, it can be very useful to see trends.

    I believe that in Victoria Corelogic use settlement data. Which means what we are seeing now is to some extent the result of auctions 2 months ago (ie when things really started turning around).

      • “Approximately 98% of Australian properties have been
        captured in the CoreLogic databases with sales time series
        data that cover a period of more than 40 years (as at
        June 2017). There is a high degree of accuracy in recent
        sales data as 60% of sales are captured before being
        communicated by the Valuer General within each state.
        These features make the data repository the timeliest
        in Australia and thus allows for an equally timely daily
        hedonic index. ”

        so daily index is based on info about 60% of sales that are received at the time of sale not at the time of settlement

      • For example they immediately include reported auction sale prices, but not “price withheld” results (those take months to filter through) – you decide if you reckon the daily data is representative!

      • I don’t think that “Valuer General” data is the same as settlement data, the two should not be conflated. Valuer general date is used for things like land tax valuations.

        Having said that, I believe that this debate (unlike some others) is worth having — Corelogic are not fully transparent about the details of their methodology. I still maintain that they either mostly or completely use settlement data.

  2. Here’s the thing. Or things.

    Option 1 is that the data is valid, and the value of the Sydney property market rose by half a percent in a single day. This seems…unlikely.

    Option 2 is that their numbers over the 3 months since the election have all been completely wrong and they’ve had to apply a mammoth correction to fix the problem. Sydney was at 151.48 on 20-May, and 151.85 yesterday, which is a rise of 0.37 points. So a one day “correction” of 0.68 points means that over this period their original numbers have been off by about 180%.

    That’s Treasury Department levels of estimation. Out in the real world, we’d call that wrong. If your tracking system is guiding an autonomous vehicle down the road and suddenly exhibits this behaviour, well, you’ve just swerved off the road at high speed and killed everyone in the car. If you’re controlling an engine at 5000 RPM you’ve just blown it up. If you’re guiding an oil tanker into a harbour at night, you’ve left the oggin and hit the beach for one of those Exxon-Valdez moments.

    If you chart this “data” with Excel it is….inexplicable.

    To produce this shit without comment is offensive, and the people responsible for it should be ashamed of themselves.

  3. “There is a high degree of accuracy in recent
    sales data as 60% of sales are captured before being
    communicated by the Valuer General within each state.
    These features make the data repository the timeliest
    in Australia and thus allows for an equally timely daily
    hedonic index. ”

    Wow so they are jsut taking the word of the real estate agent for 60% of their data. I think it is as dodgy as clearance rates.

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