Zestimate it! Is housing picking up again? By: Xxxxxx Xxxxxx Xxxxxxx Xxxx Xxxx Xxxxxxxxxxx Xxxxx Xxxxxx.

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Presentation transcript:

Zestimate it! Is housing picking up again? By: Xxxxxx Xxxxxx Xxxxxxx Xxxx Xxxx Xxxxxxxxxxx Xxxxx Xxxxxx

Frisco – West Falls Village

136 Houses – Criteria (list of variables) Year the house was built and age2 The number of bedrooms and Bedrooms2 The number of bathrooms and Bathrooms2 Square-footage and Square-footage2 The presence of a pool (dummy variable) Pool X Square-footage

Backward Elimination Factors with P-Values greater than.05 were eliminated Eliminated observations 104 and 132 These two observations lowered the normality P-value more than acceptable

$356, Zestimate 3 years old 4 bedrooms 4 bathrooms 3837 square-feet 1 (pool) 8349 Hamilton Lane (outlier to be excluded)

$425, Zestimate 8 years old 5 bedrooms 4 bathrooms 5188 square- feet 0 (no pool) 2102 Dowelling Drive (another outlier)

Regression Analysis: Price versus Age, Sq-Footage2, Pool, Age2 (Final Model) The regression equation is Price = Age Sq-Footage Pool Age2 Predictor Coef SE Coef T P VIF Constant Age Sq-Footage Pool Age S = R-Sq = 89.2% R-Sq(adj) = 88.8%

Regression Equations Pool/No Pool The regression equation for houses with a pool: Price = Age Sq- Footage Age2 The regression equation for houses without a pool: Price = Age Sq- Footage Age2

Taking observation 104 and 132 allows the normality to a marginally satisfactory level of Testing for Normality

Residual Plot

Houses for Sale Worst Deals Best Deals

Conclusion Is there a slowing housing market based on our regression analysis of Frisco’s West Falls Village? The data shows that the for sale price in 3 of 7 is above our estimated selling price. 4 houses are under priced based on the model from -$4,800 to -$53,000