| Online: | |
| Visits: | |
| Stories: |
| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
What can we gather from analyzing all sales data for an entire block of housing? Examining one street in Torrance with homes built in 1953 and 1954.
doctorhousingbubble.com / By Dr. Housing Bubble / Feb. 15, 2015
People may think there is an elaborate system when it comes to pricing real estate. For many companies, we can look at earnings, potential for growth, management, and also dive into the balance sheet to examine the nuts and bolts of the operation. Even with all of this data, markets fluctuate. But with real estate, the appraisal data is as rudimentary as it gets especially for single family homes. Basically most systems use the comp method of pricing homes. That is, an appraiser will use three homes in the nearby vicinity that have recently sold and that will be the basis for price. It doesn’t matter that the home would rent for $2,400 but end up costing you $600,000. Crap shacks all across the Southland exhibit this behavior. More to the point, you have many older owners living in homes that they would have no chance of affording today. Does it make sense that only a handful of sales determine the price of current listings? Maybe it does but few bother to examine this assumption. After all, you can’t fault a seller for trying to get as much as they can. I’m surprised I haven’t seen this analysis conducted but why not examine all home sales for a block of housing? Today we’ll dig deep into the data for an entire block of homes built in 1953 and 1954 in Torrance.
One sale does not come close to representing a neighborhood
Torrance has some nice areas but most of the city is basic post-World War II housing. Housing built for basic functionality and affordability, at least when it was designed in the 1950s for many sections of the city. You would think that some of these places have full upgrades but most have the same bones from when they were built back in 1953 and 1954.
I wanted to examine data for a block with at least 10 homes. This block has 16 homes. What is useful is we have standard sizes as well to compare. Let us look at our block.
The post What can we gather from analyzing all sales data for an entire block of housing? Examining one street in Torrance with homes built in 1953 and 1954. appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/02/15/what-can-we-gather-from-analyzing-all-sales-data-for-an-entire-block-of-housing-examining-one-street-in-torrance-with-homes-built-in-1953-and-1954/
