The good news? ANZ’s new Housing Search Index suggests house prices may stabilise later in calendar 2018, consistent with the message sent by auction clearance rates.
It is early days, however, so ANZ Research is not getting too carried away with the signal.
Google Trends, available since January 2004, provides daily and weekly reports on the volume of queries related to various industries.
Significant research has shown this data may correlate with the levels of economic activity in given industries, and thus may be helpful in predicting macro indicators.
The rationale behind the ANZ Research approach is Google searches are able to gauge ‘collective wisdom’, revealing sentiment towards a given market, such as housing.
For example, a surge in searches on the topic of ‘stamp duties’ may indicate interest for buying a property is heating up, and so presage a rise in house prices.