Rightmove respond to my AP vs Selling Price piece

Just a note on your PIE article. Created some interesting debates!

Just an observation from a methodology point of view. Many of the indecies [sic] not only measure prices at different timescales in the process as you are aware, but also have different methodology to add to the confusion! Prices are therefore apple and pear comparisons in some cases so prices cannot be cross-referenced. The trend in price rises/falls can be compared amongst all, but some are leading indicators, some lagging ones, and some small sample sizes. Rightmove has the biggest sample btw of over 100,000 new listings, but is a lead price indicator. We remove approx. 10,000 outliers every month to avoid distortions. We have lots of other stats around demand/supply/time to stc etc.

Rightmove, Acadametrics and DCLG have the same methodology (and very similar prices), whilst other indecies use one of two other methodologies. See below. The big ‘gap’ in prices is not to do with multi-listings or on-line agents over-pricing, or gap between asking and ‘sale agreed’ but purely down to mathematical calculation issues.

On price gaps, we match properties on Rightmove with Land Reg on individual properties where we have full address (but we do not publish this data) and the gap between final listed asking price and Land Reg varies between an average of 2% and 7% over the years…depending on the state of the market. Land Reg have quite a few issues on data accuracy according to agents I speak to and our analysis (as well as their methodology differences) so none of the indecies are the complete article…. But useful for trends and specifics in their speciality area.

Hope that is interesting….if you want to study the different mathematical small print, we have a man who can chat for hours on the subject!

Best regards

Miles