Pricing Nation Econometrics, a division of Pricing Nation LLC (Pricing Nation), predicts that the average home price in the Boston Metropolitan Statistical Area (MSA) will decrease by 0.347 percent twelve months from now. Boston residents can be pleased that housing price declines look like they are essentially bottoming out. Pricing Nation Econometrics has also just released their heat map (see attached) predicting home price changes for each zip code in the Boston MSA one year from now. The zip code with the largest predicted improvement in home prices is Milton Mills (03852) with a 3.39 percent increase and the zip code with the largest predicted decrease in home prices is East Hampstead (03826) with a 9.44 percent decrease. Pricing Nation will provide its monthly projections, initially just for the Boston MSA the related zip codes, at 7:00 a.m. of the last Tuesday of each month.
Pricing Nation has developed an integrated suite of regression based models that predict housing price changes at the MSA level, zip level and house level. These models have been built using data over the last ten years which is a robust training period as there has been both an upswing and downswing in prices during that time. The model results for the Boston MSA are statistically highly significant. Of particular importance is that the Pricing Nation model, when used for historical periods, would have predicted the severe downturn in Boston MSA housing prices in August, 2006, 12 months before it actually occurred in August, 2007 (downturn data reported by S&P/Case-Shiller Home Price Indices) and 16 months before the U.S. officially went into a recession according to the National Bureau of Economic Research (NBER), a nonprofit group entrusted by the government with determining when recessions begin and end.
Pricing Nation believes it is important to predict home price changes. From the Great Depression through 2008, homeowners generally made money investing in their homes if they owned them for a considerable amount of time. It became common ‘wisdom’ that home prices across the country would always go up. With the advent of the Credit and Housing Crisis, we now know that this common ‘wisdom’ was flawed. Housing prices will go up and down in the future based primarily on local demand and supply factors combined with a number of macroeconomic variables. These factors are the drivers in the Pricing Nation prediction models.
The purchase of a home is typically a family’s largest investment and given the uncertainty in the housing markets, Pricing Nation is making their unique forecast of price change for each home in the Boston MSA available at www.PricingNation.com for an introductory price of $19.99 per home (regular price is $49.99 per home). The forecast for each home comes with “The Home Investment Report Card” (see attached), which also rates all of the local and national factors influencing the forecast and educates the consumer about factors that have a positive or negative impact on their investment. “The Home Investment Report” card is designed to be easy to use for all homebuyers and sellers..
Pricing Nation is committed to provide individuals with the information they need to make the major financial decisions in their life. Pricing Nation is launching its product in the Boston MSA and will be expanding its offerings on a city by city basis.
For more information, please contact Raj Koganti at firstname.lastname@example.org