Monday, 19 May 2008

Misleading percentages

"House sales to fall by 40%" is the headline used to attract attention by Yahoo to a report from the Chartered Surveyors.

This is serious, but it is also misleading. When you read on you find that house prices are expected to fall by 5%, whilst house sales plummet 40%.

The immediate downside risk is to the estate agents, the surveyors, and the removal companies.

But sales and prices are easily confused and most will think that the prices are to fall precipitously. They may, but that is not what the report expects.

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