Nationwide and Halifax drop housing forecasts
Today's announcement that the Nationwide and Halifax are to drop their housing forecasts due to excessive turbulence in the market has caught many observers by surprise. These are the two main providers of data to the housing market and the fact that they are uncertain as to both the quality and assurance of such data in current markets is of concern.
This withdrawal or a vital part of the housing market in the UK should not be underestimated and also serves to highlight the uncertain and volatile nature of the housing market at the moment. Many countries around the world have decided to acquire empty properties for social housing and while nothing has been announced as yet this could be an option for the UK government. Some observers would then class this as a "false market" which would be supported by taxpayer's money in the short to medium term.
It is also worth remembering that there are substantial regional variations in the housing market which have been extenuated during the current market turmoil. Those looking to sell their homes appear willing to drop their price time and time again which makes measuring and predicting future price variations very difficult.
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