In the previous two segments of this series, we discussed the primary and non-primary elements of the housing market. In part three, we will delve into the current valuation levels and pricing methods and how AI-powered machine learning can enhance valuation accuracy.
Case Shiller Price Index
Author: Although the housing market varies greatly depending on
the location, recent data from the Case Shiller National Index shows a steady
decline in prices (February 2023 = 296.69) since reaching a peak of 305.15 in
June 2022. The current high-interest rates and the ongoing regional banking
crisis could result in stricter lending practices, which would further decrease
demand for housing in the short term. Homeowners who are content with their low
mortgage rates and are not under any pressure to sell in a declining market are
expected to stay away from the market, as they will not be able to make a
substantial profit. Additionally, AI has already had a negative impact on
high-paying jobs in the technology and finance sectors. Considering these
factors, do you anticipate any catalyst that could cause the housing market to
improve in the near future, aside from the closeout inventories from builders
that mainly benefit cash buyers?
ChatGPT: One possible catalyst for improvement in the housing market could be a relaxation of lending practices by banks. If lenders are willing to offer more flexible and affordable loan terms, this could help increase demand from potential homebuyers who may have been previously unable to secure financing due to stricter requirements...
* To fully explore the rest of the chapter, I recommend obtaining a copy of my book on Amazon. Here are the links:
Kindle version: https://www.amazon.com/dp/B0C7N9CW8J
Paperback version: https://www.amazon.com/dp/B0C7J4X64P
Hardcover version: https://www.amazon.com/dp/B0C7J7D6VH
PDF version (non-Amazon): https://payhip.com/b/7nTyK
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