Friday, May 1, 2009
Seasonal adjustment puts cat among the pigeons
Last month much was said of the surprise bounce in Nationwide's House Price Index, which saw house prices jump by 0.9 per cent. Then this week the bouncing cat was pronounced dead as the building society revealed an April drop of 0.4 per cent. But is the cat really dead? John Charcol senior technical manager Ray Boulger has long bemoaned "seasonally adjusted" house prices, the norm for the HPIs of both Nationwide and Halifax, as "doctored" statistics that aren't showing us the whole picture. It might be time to check the pulse of little Whiskers.