Method and system for providing a home data index model

Abstract

The present invention builds Home Data Index (HDI) models. One driving force behind this HDI initiative is that no one model or measure can truly capture the widely dynamic movement of home prices. Even within a small geographical area, such as a ZIP code, there is significant variation in property sale types, sale frequencies and sale values. To better describe these variations, the present invention presents a suite of paired sales and price per square foot index models built around an array of property transaction characteristics. These HDI models expand on the usage and understanding of traditional home price indices (HPIs) by implementing a multidimensional index comprised of four main dimensions: geography; time frames; value range; and property sales type. Several layers exist within each dimension, allowing for more than 300 different index model perspectives for a given property address. For each permutation among the layers of the four main dimensions, a model is constructed with an associated confidence score that reflects the statistical relevance of each estimate.

Description

CROSS REFERENCE TO RELATED APPLICATIONS[0001]This application is a divisional and claims priority benefit to U.S. patent application Ser. No. 12 / 581,060 filed Oct. 16, 2009, which claims priority U.S. provisional patent application No. 61 / 106,575 filed Oct. 18, 2008, which is incorporated by reference as if set forth herein.BACKGROUND OF THE INVENTION[0002]1. Field of the Invention[0003]The present invention generally relates to determining real estate trends and housing values, and, more specifically, to a Method and System for Providing a Home Data Index Model.[0004]2. The Prior Art[0005]The US Office of Federal Housing Enterprise Oversight (OFHEO) publishes the OFHEO HPI, a quarterly broad measure of the movement of single-family house prices. The Housing Price Index (HPI) is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions o...

AI Technical Summary

Benefits of technology

The present invention is about creating models that describe the movement of home prices. These models take into account different types of properties, sale frequencies, and geographical areas. The models use a combination of traditional home price indices and new dimensions to capture more of the dynamic nature of property sales. Several layers exist within each dimension, providing more than 300 different models for a given property address. The models are ranked based on their statistical relevance, with a confidence score for each. This invention helps to better understand and describe the complex movements of home prices more accurately.

Problems solved by technology

One driving force behind this HDI initiative is that no one model or measure can truly capture the widely dynamic movement of home prices.

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