The basis of the methodology for calculating the indices of real estate market think tank irn.ru put a few hypotheses. They are the result of long-term monitoring of the real estate market of Moscow region, as well as reflections on Principles of behavior. And partly an attempt to create more or less objective model of the dynamics of the real estate market. The first hypothesis is that the property market – a very inert substance. Even during the most intense economic crisis in August 1998, dollar prices began to decline only in October, that is, almost two months. Their decline was also not momentary and sudden. Gradual decline continued until the summer of 1999 year.
In other words, the real estate market is not inherent in the sharp fluctuations with changing trends from month to month. Many examples suggest that the real estate market can be described only smoother performance, and characteristic period of the change trends of about two months. In contrast to this approach is often practiced by a direct calculation of the average price leads to a dramatic statistic jumps from month to month, not to mention races from week to week. In one month can get a noticeable increase in prices, but in the next – they fall, then again increase. This creates a false impression of market swings. Also from month to month can be very tempo ride changes in prices – a strong increase in one month, sinking to the next and the continuation of the old growth further.