Charts showing the annual appreciation or decline in real estate values over time are visual snapshots of Supply & Demand forces in action. Technical Analysis (TA) relies on these charts because they accurately reflect what actually happened. On the new platform you see these cycle charts in the Market Summary Report (the Market Outlook and Wealth Phase views) and in Custom Charts PRO.
ANY and ALL Fundamental factors that could and did influence real estate values in THAT market, for THAT time period, are ALREADY reflected in the chart. Other Fundamental factors that did not influence prices in that market for that time period are, by definition, excluded.
The practice of TA consists of what are called "Studies" — different sets of calculations and algorithms proven over time. These Studies include Market Psychology, the most powerful driver of all. Because real estate is so cyclical (compared to the stock market, for example), relatively simple Studies can accurately track local markets.
Using these charts and Studies, HousingAlerts deciphers the data into two broad categories:
- Market Momentum — the Six Trigger Alert Report (S.T.A.R.)
- Technical Analysis Point Score (T.A.P.S.)
Both now appear in the Market Summary Report → Advanced Mode, right alongside the cycle chart they summarize. For deeper education, visit the free Video Training section — the How to Predict Local Real Estate Market Cycles video is the best place to start.