Below are some of the discoveries made on Cow Hollow (click on image to enlarge):
- The proximity to the median price - the number exactly in the middle - captures over two-thirds of the values of Flats, Single-Family Homes, and Condominiums in Cow Hollow. Paying attention to the median as a price proxy is, therefore, most important. It’s also a little better than talking in averages because as you see in the charts above… the data skews nicely. No surprises there.
- A predictor model was developed and it was discovered that square feet is a leading predictor of price! We kind of knew this all along - but now we have the evidence - that's encouraging.
- After making sure that bedroom and other inputs do not skew the relationship of total square feet to price - we tested for normality.
And that’s exactly what we got: the data we worked with is reliable! In English: we can trust the results.
Here comes the coolest part of all: we figured out how to model an expected price based on key inputs:
Everything is about comparisons, and this is precisely how we maximize the ability to compare and spit out a more reliable listing indicator. At the end of the day, most of this is behind-the-scenes work, but for once I wanted to put it out there so you could see at least some of the methodology. Based on the responses to this I would love to get more specific with other sub-districts. Feel free to email me at email@example.com