Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He has been voted Australia’s leading property investment adviser and his opinions are regularly featured on radio as well as in major newspapers and magazines throughout Australia.
In his great blog economist Chris Joye displays a chart of RP Data-Rismark’s daily hedonic index for Sydney, Melbourne,and Australia’s eight capital cities which shows house prices rebounding is a remarkable response to the RBA rate cuts in May and June.
These graphs are measuring the figures in raw terms. Joye suggests if we seasonally-adjusted the June and July data, the rebound would look even stronger.There has been a lot of controversy recently about the accuracy of these daily figures, and while the jury is still out about the precision, RPData say their index does not just take into account recent sales, but it reprices 4-5 million homes every single day!
Anyway here’s what the graphs show…