What I find amazing is that until recently we had not heard a single thing about this proposal before ASIC. I think the hedge funds will stick to shorting the banks and other financial institutions following the announcement yesterday to lift the shorting ban.

You are correct we are in the box seat where I believe the agents will confidentially archieve sales results – who wants to take a punt on property markets in May when you are working off March Data (and that is still incomplete). RP Data need a new strategy for their model to work.

A vexing issue – indeed

Presumably Rismark derive sales data from sources other than real estate agents, such as the Office of State Revenue. I am no expert on Real Estate Agent’s disclosure requirements but I would imagine distorted reporting would attract Trade Practices Act attention.

Regardless, if you think about this product, who will it appeal to? Developers would want to short sell it to hedge the value of their investments (provided they are not already broke). Banks would have to short sell it to protect against negative equity from falling property prices. This may be seen as a cheaper version of LMI.

Those who have perhaps a broader macro perspective than the Mosman peninsular might see it as an appropriate sell, given the precendence of other, similar markets etc.

The only ones who would really buy this index are those saving for a deposit and don’t want prices to creep away from them, the small end of town.

So yes, this M Jackson is completely correct. This is a screaming sell, no matter how the data is manipulated. The big money is hedging against price decline and negative equity. The smart money is shorting anything to do with Australian property. And Real Estate agents are clutching at straws, claiming housing hes never been so affordable.

I wish that I had known earlier as I have unfortunately given my chauffeur the day off. I am more than happy for Steve or Richard to race you:)