How can Data Science help decipher the Domestic Real Estate Market?
Hi everyone. David from rondofiniti here. Real-estate organisations are regularly supplied with a mountain of data sourced from both the market and a host of different websites. Certain of these sources are also subscription based and offer the latest real-estate transactions including some forecasting of key market indicators. But, even with access to this overwhelming amount of data, it can still be difficult to answer questions like:
What is the consumer market demand?
How hot is the market?
When should a property be auctioned as opposed to a standard sale?
Which suburbs have a better hit rate for auctions?
How will the consumer market demand change over time?
When in the future will it make sense to move to standard sales rather than auctions?
Knowing the answer to these questions is fundamental to ensuring real-estate personnel resources are being utilised as efficiently as possible.
Firstly, imagine if you could do away with pages and pages of listings, sales data, suburb data etc. by looking at and interacting with a compelling data visualisation like the one below:
Using this on-line tool allows real-estate bodies to gain important market insights in a matter of seconds.
Secondly, the value of experienced personnel with a strong understanding of economics, forecasting and market state cannot be overstated. Let’s be clear, Data Science does not replace this. These people, or intangible assets as we like to call them, are extremely valuable in any business. But with the additional assistance of data science, market insights and forecasting can be simplified and productionised quickly.
Thirdly, modern machine learning can look at data much deeper than humans can. These computational models, for example, can look at data such as auction clearance rates over time, and determine underlying trends several layers deep. We have developed such a model that provides real-estate firms with good indications of auction clearance rates over time. Why care? Well if you know the clearance rate is high, sell as many homes as possible at auctions. When the clearance rate is low, sell more properties under standard sale conditions.
Let us help you with your competitive advantage. Access the most up to date data visualisations and forecasts that tell the story far better than words.