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real estate analytics, hyper-local price trends, drivers of value, hedonic analysis

Real Estate Analytics - Page Topics

Why using the median home value creates a distorted trend?
Why using price per square foot creates a distorted trend?
Does the Case-Shiller index have these same issues?
What is a "hedonic" real estate price index?
Tutorial: compute your own hedonic real estate price index?

Real Estate Analytics - Overview

The real estate market has undergone a once-in-a-generation transformation in the last few years. The extreme overvaluations and irrational exuberance seen by lenders, builders, and homebuyers in 2006 is gone. Prices have declined dramatically, and consumer preferences have changed markedly. To understand the new realities of the real estate market, you need to go beyond the yesteryear metrics of "median home value". Global Decision uses advanced statistical analysis (technically called a Hedonic approach) to real estate valuation. Our approach not only more accurately shows the true trend of home values, but it also distills the home into the underlying attributes that drive value (bedrooms, bathrooms, size, lot size, neighborhood, etc.). Our blog reviews the Case-Shiller data as it's published for the Los Angeles / Orange County market, and we invite you to share your comments on our analysis.