Friday, June 10, 2011
Indices methodology called into question when prices are falling.
Legendary mortgage broker Ray Boulger has hit out at the â€˜farceâ€™ of seasonally adjusted house prices in surveys from the likes of Nationwide and Halifax. Boulger, of John Charcol, said the Nationwide and Halifax reports distort the market through the â€˜nonsenseâ€™ of being seasonally adjusted. He hit out just before the latest survey was published this morning â€“ the LSL Academetrics report, which says it is â€œderived from Land Registry house price data, seasonally and mix adjusted by property type â€¦ The prices are smoothed to show underlying trends.â€ But Boulger said: â€œThe way providers of house price indices seasonally adjust their figures is a farce (or, seasonally adjusted, a comedy).