CoreLogic’s latest House Price data has raised plenty of eyebrows amongst Property Investors
CoreLogic published their latest House Price Index on 31st July. The data showed that house prices have bottomed out and increased in many areas of NZ over the last 3 months. This is welcome news for all homeowners.
The perceived peak in interest rates, easing of CCCFA and LVR rules, strong employment and net migration flows are all contributing to the turnaround.
Our local Hamilton market has seen flat or marginally negative price growth in the last 3 months and is faring better than the overall NZ average.
What is the CoreLogic House Price Index (HPI)?
The CoreLogic HPI is a SPAR (sales price appraisal ratio) index, meaning it applies the performance of recent sales to the entire base of properties in an area to measure how market movements have affected all properties. By calculating the average property value in each area, comparisons can be made with previous periods. It’s more reliable and reflective of property value change over time than measures that use sales prices in a given period, as the composition of properties which sell in a period can change dramatically, producing volatile and less-representative results. When compared to other house price index methodologies, SPAR indices were found to perform the best, offering greater stability, robustness and accuracy.