From today’s Indo.
A couple of weeks ago we penned a piece headlined ‘Prices home sellers accept only reliable market guide’.
**The gist of the piece was, as the headline suggests, that all of the various ways for calculating rises and falls in prices were now questionable as so many vendors were willing to accept offers way below “guide” prices.**In a market that has completely stagnated, where are we going to get price figures we can trust?
**Dr David Duffy, of the ESRI, pointed out that criticism of the ESRI/Permanent TSB House Price Index – the calculation tool which gained household status during the boom – was, perhaps, unjustified.
Dave points out that he uses a system of “hedonic regression” which, is apparently, the only way to go.**
The latest ESRI/Permanent TSB price index shows that average national house prices fell by 5.2pc in the first seven months of the 2008.
Dave, if a drop of the old “hedonic regression” can make the fall in the value of my house just 5.2pc between January and July, then mine’s a double.
I’ve got to stay that my opinion of ESRI statisticans has gone waaaaaaay up
they’re all hedonists? who knew???
That is a poor response from a statistician. It is not the treatment of the data that is the issue (i.e. how the collected price information is transformed into an homogenous time series), it is about the raw data itself - not reflecting genuine current transaction prices.
The article is no longer on line, when I click link I get 404. However is existed as google has indexed it.
Or as generally stated in the business.
garbage in, garbage out.