Friday, July 16, 2010

How could I create a model that uses statistics for home price appreciation history?

Like, would it be a bell curve? How many standard deviations are we from the mean home price appreciation etc.?

How could I create a model that uses statistics for home price appreciation history?
Just thinking out loud here:





I would imagine that you would have to have a 'starting point' in time like when the house was first built or sold and then increments of time and the associated appreciation (or depreciation). For the actual price of the house you would have to use actual selling price or maybe even the tax appraisal value. All of this would be influenced heavily by the location of the houses you are considering. In the US housing price history would be very different from one region to the next.





So, with your $ values and associated time increments (1 year, 2 year, whatever) you could analyze the data:





After 1 year, X% went down or went up, or you could use $ increments instead - like 11% went up 0 to 10% and 3% went up 10 to 20% and 1% went up (or down) 20% to 30% so on and so forth.
Reply:your questions are all retarded and i wish you would just fall off a cliff. Dirty whore


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