The AI platform, Bard, which runs on Google’s technology, recently made headlines by successfully predicting the UK’s average house price in the Land Registry’s monthly House Price Index. Bard’s anticipated figure for June stood at £288,000, and astoundingly, the actual figure matched this prediction. This significant reveal was brought to light through research conducted by the personal finance comparison site, finder.com.
In its most recent prediction, Bard suggests a slight decline in average house prices, expecting them to drop to £287,000. But it doesn’t end there. The AI tool anticipates a further dip for the subsequent month’s release, which will be focused on August’s house prices. Bard foresees a £2,000 reduction from its July forecast, which implies house prices might plunge to a concerning £285,000.
Validating the Prediction: Aligning with Traditional Data
If Bard’s predictions come to fruition, this would align with data from Halifax, released in September, which pointed out that the UK is experiencing its steepest decline in house prices in over a decade – a whopping 14 years, to be precise.
For homeowners and property investors, there’s an unsettling forecast in the mix. Bard projects that UK house prices might stagnate, without any significant upward movement until either late 2024 or perhaps early 2025. However, Bard, being an AI tool, provides a necessary disclaimer stating, “The actual timing of the bottom point and the recovery will depend on a number of factors, and it is impossible to say for sure what will happen.”
Human Insight: An Expert Weighs In
Kate Anderson, deputy editor at finder.com, weighed in on this evolving scenario. She remarked, “There seems to be a sense of inevitability in the market that house prices will continue to drop for the next few months, so Bard’s prediction may end up being correct, or close to being correct, again.”
Despite the accuracy of Bard’s recent predictions, Anderson maintains a slightly more optimistic view. She adds, “While I would personally expect house prices to rebound sooner than Bard’s prediction of late 2024 onwards, it’s intriguing to see how advanced AI has become to make such informed predictions.”
In a word of caution, Anderson indicates that we are in the infancy stages of AI technology. While Bard might be impressively accurate in some predictions, it has its quirks, sometimes faltering with basic queries. “This release is more of a conceptual experiment than a serious prediction piece,” she clarifies.
What Does This Mean for Property Enthusiasts?
AI’s footprint in the real estate domain is growing. Anderson believes that the property industry will soon witness a significant impact from AI. Progressive firms are likely already investigating how tools like Bard can give them a competitive edge. In the not-so-distant future, potential property buyers or sellers might leverage AI insights to make better-informed decisions.
In conclusion, while AI platforms like Bard are making waves with their ability to predict property market trends, it’s crucial for investors to approach such predictions with a blend of optimism and caution. Combining AI insights with expert advice might just be the winning recipe for success in property investments.