RBNZ paper sets out new house price indexes

Auckland has seen particularly rapid house price rises

Research published by the RBNZ sets out the designs of three new methods for calculating house price indexes.

The “analytical note”, by Jed Armstrong, Ashley Dunstan and Tobias Irrcher, builds on an improved dataset provided by the Real Estate Institute of New Zealand. The authors create an index based on the sales price-to-appraisal ratio (Spar), hedonic regression and repeat sales.

“All three methods are found to produce credible-looking indexes, which match the turning points and well-estab