Question:
Retrospective data is useful for seeing what happened, but I am most interested in the prospective or predicted data of where some of the markets are headed. How does HousingAlerts data predict future markets?
Answer:
HousingAlerts is, in essence, a type of artificial adaptive intelligence software system able to detect complex patterns in data. In mathematical terms, it's a universal function approximator — given the right data, correctly configured, it can capture and model input-output relationships and generate actionable decision triggers. Past data is a prerequisite.
There's an old saying that applies to life and to real estate: "You have to know where you are before you know where you're going." If you don't know where a market is in its cycle, you're in no position to make a truly informed decision about whether to buy, sell, or hold — or which strategy to use.
The data is used in conjunction with Technical Analysis (TA) — it's the combination of the two, in a visual format, that generates local-market decision triggers. TA tools are used by virtually every investment bank and global trading firm on the planet to analyze market cycles and time trillions of dollars in daily stock, commodity, and currency investments. It has withstood the test of time, even in complex, fast-moving markets.
TA works so well for real estate because real estate is so cyclical — local cycles are like a slow-moving train compared to the minute-by-minute financial markets. Most importantly, TA incorporates Market Psychology — one of, if not the most, dominant driver of future local real estate values.
On the new platform you see this forward-looking read as the Market Outlook Score (on the Map, in The Table, and on the Market Summary Report), backed by the S.T.A.R., T.A.P.S., and Wealth Phase studies in Advanced Mode.
