''The RBA’s preferred smoothing technique is a method produced by the US Census Bureau called “X12”, which is freely available for anyone to use via its website.
''I’ve applied this to RP Data-Rismark 5 capital cities index, which is updated every day by Bloomberg. We have data through to 28 September, and will get the broader eight capital city index findings on Tuesday morning.''
''The results of my analysis are summarised in the chart. In short, Australian house prices have been appreciating strongly in both seasonally-adjusted and raw terms. Over the last four months prices have risen by 3.1 per cent on a raw basis and by 2.6 per cent if we smooth the index. That is, Australian house prices have inflated at an 8 per cent annualised pace over the last one-third of a year even after accounting for seasonal factors. Sydney and Melbourne price increases have been in double digit territory.''
