Victoria's Newest And Most Accurate Residential Market Index
Victoria’s peak professional association for the real estate industry today revealed its Residential Market Index (RMX): a new tool to measure property price trends.
REIV President Robyn Waters said this latest tool builds on the REIV’s quarterly median price reports.
“The REIV Residential Market Index is, like any other index, a number. Just as the ASX200 index allows investors to understand the strength of the Australian stock market, so the RMX allows us to understand the residential property market in Victoria. It provides a current, succinct insight into real property price trends in the Victorian market and is updated weekly,” Ms Waters said.
“The data used in the index is just days old. The RMX sets a new standard in the availability of information that is truly reflective of the housing market right now.
“The REIV will continue to report on median prices quarterly but medians are determined by the type of properties that sell during a particular quarter: if a large number of prestige properties sell in a quarter, the median will go up even if the local market is stable.”
The RMX takes into account the total properties in Victoria, giving sellers and buyers a more accurate and up to date reflection on current price trends.
“The REIV has developed the RMX in consultation with experts including the Reserve Bank of Australia and Deakin University and uses a similar methodology to the Australian Bureau of Statistics (ABS) Residential Property Price Index,” Ms Waters said.
“The current RMX Index reference period is 2016 = 100.0 to match prices with the most recent ABS census data. This means that the weighted average of property prices in 2016 was given a value of 100.0 and price movements over time are relative to this ‘base’ reference period.
“In simple terms, the current RMX value of 114.1 means that properties in Victoria at the moment are worth 14.1 per cent more than they were in 2016.”
Ms Waters said the RMX was quite volatile over 2018, ranging from 118.2 to 132.6 and it is currently recovering from the the usual early year drop in price, although the drop has been more severe than in recent years and currently stands at 114.1.
“The REIV collects its data directly from our members; it is not subject to assumption or internet research. The REIV collates more than 90 per cent of all auction data each week; we believe we have the most reliable real estate reporting in Victoria,” Ms Waters said.
How does RMX differ from median prices?
Where is the RMX sitting?
The RMX is sitting at 119.8 as of 14 April 2019. It was sitting at 129.9 at this time last year. The second half of 2018 saw the overall price of properties in Victoria decrease by six per
cent. The REIV currently produces three indices; the RMX (covering all properties in Victoria), the REIV House Index, and the REIV Unit Index and is working on several more.