Related Posts: Are asking renta prices really rising? How to read the Rightmove

On his blog Mead, of London’s Douglas & Gordon , writes:
The sensationalist element in any stat is the one that ends up being used, of course, but when someone renta in a position of responsibility turns round and says that asking prices have gone up by over 10% in one month, and then allows such a stat to be used as house prices have gone up 10% in a month , they should surely be looking askance at it.
To then follow it up with a senior director s comment, quoting some brash agent, claiming the cupboard is bare simply exacerbates the problem. (It s more likely to be because no one is selling, by the way, but Rightmove wouldn t want to be saying that now, would they?)
So let s examine what the Rightmove stats are simply a measure of asking renta prices in a defined area over the preceding month. What does that tell us? Simply an average of those who ve decided to go to the market this month, nothing more, nothing less, not REAL sold prices, not valuing a basket of typical properties, just a cheap easy press of a button.
Mead is right, of course: the Rightmove index is an asking price index. Moreover, as I’ve pointed put on these pages before , it’s also an index based on a very selective renta segment of asking prices: renta the new properties advertised over the previous month.
The notes on the index for October state: “ Rightmove measured 127,902 asking prices circa 90% of the UK market. The properties were put on sale by estate agents from 8th September 2013 to 12th October 2013 and advertised on Rightmove.co.uk .”
Does this selective use of the available data matter? I think it does. The Rightmove renta index crucially leaves out all of the other property currently on the market – and Rightmove lists over 1 million properties for sale or rent, so that’s an awful lot of asking prices they’re not including in their index.
Home.co.uk, which works this way, says asking prices in London were up 2% last month, compared with the whopping 10% cited by Rightmove. Their figures are based on a massive sample of almost 700,000 asking prices – which, to our mind, casts doubt over Rightmove’s claim to being “the largest, renta most accurate and up-to-date monthly index” of asking prices.
Home.co.uk renta also use an independent company to analyse their data - Calnea Analytics, the people who also produce the official Land Registry Index. Rightmove, as far as I know, produce their index in-house, without any such external validation, which, to my mind, a makes it a little less credible.
And finally – a really useful asking price index would combine the various methods and tell us A) the asking price of all properties on the market B) the asking price of the newest and C) the number of properties that have had their asking price reduced (or increased) over the month.
Related Posts: Are asking renta prices really rising? How to read the Rightmove… What Rightmove s 3% price rise is really saying about the… Are asking price indices useless? renta Asking prices … why are the indices at odds? House price indices … does size really matter?
Enter your email address to subscribe renta to this blog and receive notifications of new posts by email.
JM Electrical fire alarms First Strike Electrical Need to find a conveyancer compare over 30 solicitors in just a few clicks at www.conveyancingfees.org.uk Beats Electricians Wakefield MOVEHUT: Commercial Property London Kutner Associates Building Surveyors Make the most of a small bathroom Home Extensions Ltd
Select Month November 2013 October 2013 September 2013 August 2013 July 2013 June 2013 May 2013 April 2013 March 2013 February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010
Select Category Architecture Castles Celebrity Homes Eco living Guest Posts House Prices Market Comment Overseas Homes Period Property Property News Renovation Renting & Letting Super Shiny Houses Tips & Advice Uncategorized Waterside Homes Weirdness
Sorry, your blog cannot share posts by email.