Thursday, June 25, 2009
Interesting List of Indices and How they Work
So Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors was probably right in March 2009 when he said: "Most of the house price indices suggest prices have fallen by up to 20pc from the peak. However, many of our members [surveyors and estate agents] cast doubt on this and calculate independently that the scale of price falls has been even greater âˆ’ 30pc or more already. They suspect the Nationwide and Halifax figures are underestimating scale of the peak-to-trough fall to date. Looking at the surveys you have to come to the conclusion that we aren't at the bottom by any stretch yet. Our members are still expecting further falls in prices, according to our survey, and if there's anyone you might expect to be talking up the market it is them"