

Visualization of Home Price Reductions - vaughnkoch
http://explore.trulia.com/datavis/priceredux/Q1-2011/

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tgrass
I'm surprised they're aggregating at the zip code level. The neighborhood
differences within a zip code seem too great for an average measurement to
have much meaning to an individual homebuyer/seller. Case Shiller breaks
values down into three tiers of price, which provides a little more insight.

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Joakal
How can they measure to give more meaningful prices?

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tgrass
Personally, I'd want it at the neighborhood level. Though there may not be
enough data within a reasonable timeframe at that level, it can at least be
reasonably compared to a broader index for the city.

I don't think you get much at the zip code level that you wouldn't get at the
Metro level.

The probability of a second reduction is also too simple. It makes no account
for the market turning positive. That's precisely the error in modelling that
failed us on the upswing: the assumption that present trends will continue.

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nix
Realtors can and do handle price reductions by delisting and relisting the
property. This hides the ask price drop, and zeroes the days on market, to the
advantage of sellers and realtors. A brief look at Trulia's "methodology"
description suggests that they are just mapping these easily gamed MLS
numbers.

