What are the indices of the real estate market
Real estate - this is one of the most reliable and wishesnnyh investment spheres of personal and corporate capital. This is due primarily to the fact that a person has somewhere to live and work, otherwise it will merge seamlessly with nature, becoming, in essence, an animal (as though it may sound rude). Real estate here is the same object of buying and selling, as well as any other items, with the only difference,it can not be put in a bag and take it away, and it costs a fortune. From the above, it is obvious that there must be a specialized real estate market, which will be carried out purchases and sales of real estate. It is also clear that this market - it is not a market in the traditional sense (the square with shopping arcade), but rather virtualth, but endowed with its own rules of existence.
On the other hand, once a market, it is clearly part of the overall economic system of the country has its own rules and performance indicators and trends in pricing. Given that the real estate market is also fairly complex structure, the very pricingand liquidity of the market depends on a variety of aggregate of factors that can in principle be different from economy-wide. This, for example, explains why when the economy slumps and inflation, the price level if it starts to oscillate very slowly and not noticeable for market players (except of those considerations that the majority of the calculations carried outin foreign currency, as it is on national may increase substantially in price).
What are the indices of real estate?
To generate and average forecast for a certain period of housing prices, analysts and market participants use a range of evaluation criteria, which are called indicesand real estate. In practice the three main property index:
- The index value, determined by the average market prices for real estate.
- The index of price expectations, which estimates the rate of change in real estate prices.
- INDECwith the yield, which is used to determine the cost-effectiveness and feasibility of investment in the property under investigation.
As these indices are calculated and applied try to briefly describe below, and read online restate.ru.
The indicator is expressed as already indicated above, in foreign currency (usually US dollars) and is a kind of indicator of the average market value of the property. However, this indicator is not the average market price in the traditional sense, since it reflects real fluctuations in property prices, excluding privychny for the average price of "statistical noise" or sample.
The index of price expectations
It is a measure, which in practice has a double meaning and understanding, which is largely caused by the highly inert nature of this market. On the one hand, this indicator assesses the percentage change in monthly prices expressedzhenii, and on the other - it is a kind of trend, a promising indicator of growth or decline.
This parameter is used when it is necessary to assess the long-term liquidity, prospects alleged invest in real estate. Its calculation is based on the logicthe principle of return, ie the ability to generate income property owner.