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PREDICTIVE ANALYTICS SUMMIT
   Scott Sambucci, Altos Research
     November 2010 | San Francisco, CA
WHO, WHAT, WHERE, WHEN, WHY & HOW
• Altos Research
• Real-time housing market analytics
• 180+ metros, 20,000 zip codes
• What is happening & what will happen, not what
  happened
• Wisdom of crowds
• The Active Market to forecast future market activity
APPLICATIONS OF REAL-TIME ANALYTICS

• Current Market Conditions
• Future Housing Prices
• Consumer Sentiment
• Mortgage Default Rates
• Financial Market
MISLEADING NATURE OF TRANSACTION PRICES
MIAMI CONDOS: MARKET IMPROVED IN 2009?

                                  Did values really
                                   moved higher?
                                The actives knew the
                                 market was weak
PREDICTING FUTURE PRICES
              SPCS20R   Active Prices
 205.00                                 $445,000

 195.00
                                        $425,000
 185.00
                                        $405,000
 175.00

 165.00                                 $385,000

 155.00
                                        $365,000
 145.00
                                        $345,000
 135.00

 125.00                                 $325,000
QE2 & THE HOUSING MARKET: SUPPLY & DEMAND
PROBLEM
CONSUMER SENTIMENT & HOUSING
MORTGAGES 60 DAYS DELINQUENT FOR THE
FIRST TIME
FICO & LTVS – BECOMING IRRELEVANT
DELINQUENCIES PEAK AT MARKET TROUGH

                       New delinquencies
                      perfectly correlated to
                        market conditions
MORTGAGE DEFAULT RATES & MARKET CONDITIONS


                                New delinquencies
                               perfectly correlated to
                                 market conditions
THE HOUSING MARKET & THE S&P 500
            S&P 500   Active Prices
1,500.00                              $415,000

1,400.00                              $405,000
1,300.00                              $395,000
1,200.00
                                      $385,000
1,100.00
                                      $375,000
1,000.00
                                      $365,000
 900.00
                                      $355,000
 800.00

 700.00                               $345,000

 600.00                               $335,000

 500.00                               $325,000
CONTACT
Scott Sambucci, VP Data Analytics
Altos Research
www.altosresearch.com
(415) 931-7942
scott@altosresearch.com
http://blog.altosresearch.com
@scottsambucci
PROPERTY TAXES




http://macroblog.typepad.com/macroblog/2010/10/real-estate-and-municipal-revenue.html

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