Home Value Predictor

Home buyers and investors often make their home purchase and property investment decisions based solely on appraisals and MLS-based information about housing prices. They assume that those sources provide accurate and reliable information that reflects the true market value of the properties they intend to buy, and all relevant current local information. However, this [...]

To a large extent, the current housing market downturn is the consequence of exceptionally lax lending standards that amidst ample liquidity resulted in the creation of a housing bubble. The bubble burst once the unsustainable and artificially-inflated prices eroded affordability and the economic slowdown caused many borrowers with weak credit quality to default on their [...]

What Caused the Housing Crisis – False Assumption 1: Real Estate Has Always Gone Up in Value, Thus It Will Continue to Go Up in Value

Macroeconomics Role in the Housing Crisis – Part 3
Not only did the macro data (with huge flaws at the local level), fail to foresee the crisis, but also the flawed macro data was “presumed” to be a trend line to extend into the future. A good example of this is at CNN Money [...]

In part 1, we learned that necessary data to make good real estate investment decisions has been lacking. If we look deeper we can see the problem revealed.
Statistically the MSA’s (Metropolitan Statistical Area) with the largest populations have the largest errors. This only makes sense since you will find a greater diversity as a larger [...]

Macroeconomics http://en.wikipedia.org/wiki/Macroeconomics is the broadest view but important measure of the economic system. As applied to housing it would address influencing factors such as disposable income, migration, available usable land, interest rates, etc. Macroeconomics in real estate applies to national or regional data. The regional data typically being the MSA (Metropolitan Statistical Area), what is [...]