CoreLogic has a highly accurate and timely suite of world-class property price indices that have transformed the way Australian's measure and understand changes in the value of residential real estate. This has been reinforced by the launch of a world-first: accurate and low volatility daily house price indices.
CoreLogic Indices are now available on a daily, monthly and quarterly basis for Australian geographic demarcations including suburb, capital city, state and nationally. These indices draw on the most comprehensive property database in Australia and are computed using some of the most advanced global index construction techniques. Special, customised versions of CoreLogic Indices are also available to paying subscribers.
CoreLogic Indices are constructed from the latest possible property sales information thereby avoiding the 6 to 8 week reporting lags that have previously plagued other published indices. For more information please phone 1300 734 418 or enquire here.
In 2012, CoreLogic commenced publication of the patented daily CoreLogic Daily Home Value Index. This index has been specifically designed to track daily value changes in the residential property market reflected by the latest available property sales information. Prior to being released, the CoreLogic Daily Home Value Index underwent more than two years of research, development and testing. It represents the latest innovation globally in residential property portfolio price measurement technology and has significant portfolio tracking and information timeliness advantages over its predecessor, the CoreLogic Adjacent-Period Hedonic Index.
The CoreLogic Daily Home Value Index leverages the technologies developed for the monthly CoreLogic Adjacent-Period Hedonic Index. With advancements in property information data systems, timeliness and quality of property attribute data, together with improved computing calculation speeds, it is now possible to produce accurate and reliable daily property value indices for the first time.
While the CoreLogic Adjacent-Period Hedonic Indices were limited to monthly calculation frequency, they have received considerable industry praise. A summary of this praise is outlined below.
In May 2009, CommSec's chief economist, Craig James, commented:
"The CoreLogic index has emerged as Australia's authoritative source on home price trends. The property database is Australia's largest and, unlike the Bureau of Statistics, all properties are counted, not just free-standing homes."
Westpac's interest rate strategist, Rory Robertson, commented:
"The CoreLogic monthly estimates are more timely and reliable than the ABS's quarterly readings."
In January 2007, CoreLogic Indices were independently audited by the Securities Industry Research Centre of Asia-Pacific ("SIRCA"), which is a not-for-profit financial services research organisation involving twenty-six collaborating universities across Australia and New Zealand. In its review of the CoreLogic indices, SIRCA concluded:
"...the results of our analysis indicate that the stratified median price, hedonic and repeat-sales property price indices developed by CoreLogic represent a material improvement over the simple median price series that have historically predominated in the Australian market. In this regard, it is pleasing to see private sector organisations that are committed to undertaking sophisticated residential real estate research and advancing our otherwise crude understanding of this complex market."
In addition to the SIRCA audit, in 2006 Moody's Economy.com, a leading global economics research organisation, also undertook an extensive review of the methodology, data and procedures used by CoreLogic to construct house price indices.
Authored by two economics PhDs, the Moody's report's summary findings, are as follows:
"The suite of indexes calculated by CoreLogic represents a significant improvement in the quality of housing price statistics available in Australia."
"We look forward to seeing these indexes as they are released and believe that they will quickly take a central place in the macroeconomic data framework of Australia."
"These data are more sophisticated, detailed and have better coverage than that used in the construction of existing housing price indexes in Australia. The high quality of the data makes it possible to implement not only median price and repeat sales indexes but also hedonic indexes, which up to this point had proved difficult to construct in Australia due to data constraints."
Other comments from the Moody's report include:
"Perhaps the most exciting methodological development is the introduction of hedonic price indexes to the Australian market. This approach to price index construction controls for compositional change by obtaining information on housing characteristics (e.g. bedrooms, bathrooms, land size, suburb, etc.)..."
"CoreLogic has access to arguably one of the best databases available anywhere for the construction of hedonic indexes."
"..the way in which the real-time data is collected, via real estate agents (over and above the traditional valuer-general and land titles sources), has the potential to solve many of the timeliness problems that has plagued measurement in this area."
Note: CoreLogic has recently updated the Hedonic Home Value Index methodology and has launched the new model for the latest results released on Sep 1, 2017. To learn more about the methodology update please click here.To read more about the launch click here.
For more information on how our research team can help you, phone 1300 734 318 or enquire here.