More than one way to measure property value movements
There is another way to measure what is happening with housing values and this involves a price estimate across all dwellings, not just that those that have sold during a fixed period.
There may be lessons for the Reserve Bank of Australia (RBA) in how dwelling values are assessed. (Image source: Shutterstock.com)
Most of the time – well almost always – when you hear about a change in dwelling values it reflects prices achieved at sale.
Homeowners often misinterpret what this means to them.
Many think, that, if say – the median value of dwelling sales
fell by say 5 per cent over the past 12 months (for example) - that their home is worth 5 per cent less.Yet, over the past twelve months there were about 490,000 dwelling sales across the country, which …
