Tuesday, 6 January 2009

So how accurate was the Nationwide 2008 house price forecast?

In November 2007, Nationwide made their house price forecasts for the year ahead.

These forecasts were woefully wrong and contributed to my feelings that Nationwide have been ramping up house prices during the boom years, sucking in millions of first time buyers.

Watch a video here.

Now that house prices are in a full crash, Nationwide do not want to make a forecast for next year. I suspect that they know full well that it will be negative.

To me this raises questions on the ethical nature of a mortgage lender making forecasts. Millions of home owners will now wish they had ignored Nationwide's forecasts and thought a little longer and maybe read some articles on asset bubbles, booms and busts (none written by Gordon Brown).

I wonder if these home owners will vent their anger on the Nationwide for their dodgy forecasts or the global events or maybe Gordon Brown for it was he who established this regulatory structure that has allowed a debt binge by the government, individuals and companies to bring the country to it's knees.

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