{"id":25736,"date":"2020-06-13T08:59:47","date_gmt":"2020-06-12T20:59:47","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=25736"},"modified":"2020-06-13T08:59:47","modified_gmt":"2020-06-12T20:59:47","slug":"how-true-are-real-estate-price-fall-headlines","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/how-true-are-real-estate-price-fall-headlines\/","title":{"rendered":"How true are real estate price fall headlines?"},"content":{"rendered":"

PHOTO: Real estate prices<\/strong><\/p>\n

Headline: House prices fell in May. Alternative headline: House prices rose in May.<\/span>\u00a0<\/strong><\/p>\n

Which is right? Actually, both. Or, more correctly, it depends on whose figures you believe.<\/span><\/strong><\/p>\n

CoreLogic records a 0.4% reduction in house prices (overall, the average across the nation) during May, but Louis Christopher\u2019s SQM Research reports a 1.1% rise in house prices over the same period.<\/span><\/p>\n

And when the latest figures from Domain and the ABS become available, they\u2019ll have different numbers as well.<\/span><\/p>\n

We could spend hours discussing why different sources produce different (and sometimes conflicting) results on what\u2019s happening with property prices. But suffice to say that they all have their own methodologies and parameters \u2013 and what they\u2019re attempting, to distil tens of thousands of sales in myriad locations into a single growth figure, is a tad challenging.<\/span><\/p>\n

But, ultimately, it\u2019s doesn\u2019t matter whether CoreLogic is right or SQM is right. Essentially, they\u2019re saying the same thing: property prices are remarkably stubborn in the face of major negative forces. As they so often are.<\/span><\/p>\n

House prices continue to defy the doomsday forecasters, many of them economists who refuse to let go of their flawed theories about how property prices SHOULD behave \u2013 and others among them opportunists who see potential to generate free publicity.<\/span><\/p>\n

READ MORE VIA THE PROPERTY OBSERVER<\/a><\/p>\n

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