Blue Chip Mortgages Port Macquarie Finance

TREAT ALL STATISTICS WITH CAUTION

Terry's View -Real estate consumers should be cautious when reading media commentary about property markets based on published statistics. Journalists tend to attribute great credibility to the price growth data published by big name research businesses but a comparison of data from multiple sources shows major differences in the findings. I recently compared the price growth figures for houses and apartments in the eight capital cities, sourced from four different research companies. It was rare for the four entities to agree about any of the city markets. In some instances, two sources claimed a city market was rising, while the other two said it was failing. Where all four agreed about the general direction of a city market, there was widespread disagreement on the rate of growth or decline. Price statistics are particularly unreliable when they describe movements in short time frames, such as monthly. The monthly changes in price growth in individual cities are often wildly erratic and ultimately irrelevant. As one example, one source claimed Darwin apartment prices fell 15% in July, then rose 13% in August. Such dramatic movements in prices lack credibility and should not be published by media. The message for real estate consumers is to treat all statistics with extreme caution.
Terry Ryder
Terry Ryder
Founder of Hotspotting