I have been wondering what economists/media mean technically when they say 'House prices will rise/fall by X% this year and rise/fall next year'
Take the media reports today 'House prices will fall by 5% this year and 8% next year'
Do these % forecasts both reference the current price level or is each % forecast for the price at beginning of the year it references?
i.e. does this mean that house will fall by a total of 13% (5%+ 8%)from current level OR does it mean 12.6% (5% + 7.6% (8% of 95% value beginning of next year))?
Just curious.
Dan B
Take the media reports today 'House prices will fall by 5% this year and 8% next year'
Do these % forecasts both reference the current price level or is each % forecast for the price at beginning of the year it references?
i.e. does this mean that house will fall by a total of 13% (5%+ 8%)from current level OR does it mean 12.6% (5% + 7.6% (8% of 95% value beginning of next year))?
Just curious.
Dan B