House price index

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gearoidmm

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Could anyone explain the vast discrepancy between the rates of house price inflation reported in the various different indices that exist and how these are calculated? Sherry Fitzgerald recently released figures indicating 21.6% growth in house prices over the past 12 months with 13.6% for the year so far

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This compares with the ESRI who claim that inflation is running at only 4.4%ytd and 6.2% over the last year.

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I know that estate agents have a vested interest in making everything look rosy but this is just ridiculous.
 
Have you read the complete reports and checked in case the sampling criteria/parameters and approach to analysis that are described might explain the discrepancies?
 
Neither include their methods or sampling criteria in the reports themselves. However I read elsewhere that the SF report is based on taking a sample of similar houses in similar demographic areas and comparing the prices that they are sold for compared to the previous month.

I found a long paper written in 1999 by the ESRI which explains their methods although to be honest it's not very clear (aimed more at economists and mathematicians methinks)

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They make a mention of SF in the reoprt but it's only a single sentence:

"In Ireland, the Sherry FitzGerald Indicator of second-hand house prices is based on repeated assessment of a basket of 150 properties, originally sold through Sherry FitzGerald".

This seems to suggest that they just go out and make repeated valuations of the same houses and decide what they think it might go for at any particular time - this couldn't be true??
 
PTSB also have their index, and they provide details of their methodology
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To August 2005, 4.4% ytd
 
Some area specific data - Glasnevin is up 25% YTD minimum.

Santry is up 15-18% YTD

Roy
 
Yet again, uncritical reporting of the Sherry Fitzgerald house price index. 30% increase in Dublin house prices in the past 12 months.

No media questioning why there is such a vast discrepancy between these figures and those quoted by the ESRI and the DOE.

Their methodology stinks and Marian Finnegan should be stripped of her economics qualifications. Uncritical reporting of estate agents own figures is the kind of thing that is driving this market onwards.
 
AFAIK the PermanentTSB survey is done in conjunction with ESRI, hence the same results in both.
 
budapest said:
30% over the last year seems about right for certain parts of Dublin.
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Okay, but they are talking about an average increase of 30% in house prices in Dublin in the last year
 
This sounds like last gasp propgaganda by the Estate Agents to get the last few quid out of the housing market before it goes belly up and they all retire off to the Canaries.

"House prices up by 30% in Dublin this year?! I must buy now!"
 
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