Asked by Puzzled and Losing Hope
Towards the end of 2011 and at the beginning of this year, various firms were forecasting 10-20% dips in property prices in 2012.
For instance:
1)Chua Yang Liang, Head of Research at Jones Lang LaSalle forecasted 10-15% downslide (in an article dated 15 Dec 2011);
2)it was reported in a 9 Jan 2012 article that a report from Bank of America Merrill Lynch predicted a 12.5% drop in prices; and
3) in an even bolder forecast, it was reported in an 8 Dec 2012 article that Sean Gardiner, an in-house analyst at Morgan Stanley, predicted a 20% drop in prices by the end of 2012.
Obviously, we all understand that market forces cause housing prices (amongst others) to be unpredictable, and that hindsight is always 100% accurate.
But therein lies a burning question within me: how did these firms come to such bold 'predictions' and then be slapped in the face with EVER-INCREASING prices in 2012 (albeit a tiny 0.1% drop)?
Truly puzzling. Anyone care to help?
For instance:
1)Chua Yang Liang, Head of Research at Jones Lang LaSalle forecasted 10-15% downslide (in an article dated 15 Dec 2011);
2)it was reported in a 9 Jan 2012 article that a report from Bank of America Merrill Lynch predicted a 12.5% drop in prices; and
3) in an even bolder forecast, it was reported in an 8 Dec 2012 article that Sean Gardiner, an in-house analyst at Morgan Stanley, predicted a 20% drop in prices by the end of 2012.
Obviously, we all understand that market forces cause housing prices (amongst others) to be unpredictable, and that hindsight is always 100% accurate.
But therein lies a burning question within me: how did these firms come to such bold 'predictions' and then be slapped in the face with EVER-INCREASING prices in 2012 (albeit a tiny 0.1% drop)?
Truly puzzling. Anyone care to help?
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