Case 28: Housing Prices

15 In testing the hypotheses: H0 β1 ’ 0: vs. H1: β 1 ≠ 0 , the following statistics are available: n = 10, b0 = 1.8, b1 = 2.45, and Sb1= 1.20. The value of the test statistic is:

Real Estate provides individuals with a source of investment for his or her future. Owning a piece of real estate could be a business investment, or in the case of this research, a home for an individual or a family. When a person purchases a home there are many things to consider. The most common information to review is square footage, price, amount of bedrooms, bathrooms, and whether the house has a garage. Validating this information versus other statistical review is very important. The buyer must have the necessary information to make the best decision. The data needs to have the widest range of necessary

The current housing market is experiencing another large, daunting bubble that I fear is leading to another burst and market crash. The “Baby Boomer” Generation and the “Millennial” Generation are currently experiencing a great disparity gap between the two of them, both in pay and in purchasing power which directly affects the housing market. As the Baby Boomer Generation begins to retire and move on from where they currently live, the housing market will suddenly experience a boom in available housing. The issue then becomes that the Millennial Generation does not currently have the economic buying power to purchase these houses. This issue is currently visible in the Bay Area where housing is at an all time high. Houses are currently being listed as Baby Boomers want to move out of the higher cost of living areas into lower cost of living areas when they retire, but their current listing prices are prohibitively expensive at the current wages the new buying generation makes. These houses are being listed for longer periods of time, many homes listed over a year, with no successful bids.

'Location efficient ' neighborhoods, and employment and recreational opportunities in walking and biking distances are attracting more and more people to reside in the downtown core. Studies show that, since 1976, the residential population has doubled, with more than 240000 people living in the Area and the ownership share has increased by almost two times since 1996 (City of Toronto. 2014b). Accordingly, the City 's housing market is dealing with more and more housing needs (CHBA, 2012; Landau, 2013). Also, Toronto Official Plan identifies the Area, as a place to accommodate significant population growth by 2041 (Ontario. Ministry of Finance, 2014). As a consequence, the value of land in the Area is extensively increasing and

In the world of real estate and homeowners’ property value, the one thing that has not changed for determining market price over the past 30 years is the location. There are other factors that homeowner’s should know when it comes time to selling or buying a home. Recent studies report the neighborhood and the home conditions are equally important for deciding to buy.

With the P-value of 0.0033 being less than the alpha at 0.05 we will reject the null

At $236,000, the average sales price of a home in the United States is now above what it was in 2006. Prices in 14 of the 100 largest metropolitan markets in the country are now above their historical averages. Look a little deeper, however, and there are reasonable explanations for the spike in prices. Of the 14 metropolitan markets mentioned above, six are in Texas, which recently experienced a huge oil boom. Texas may serve as a microcosm for what’s happening in the rest of the country.

This case involves an investigation of the factors that affect the sale price of oceanside condominium units. The sales data were obtained for a new oceanside condominium complex consisting of two adjacent and connecting eight-floor buildings. The complex contains 200 units of equal size (approximately 500 square feet each).

¹ R185 000 (20 000 x R9,25) + R150 000(20 000 x R7,50) + R50 000 (20 000 x R2,50*)

To investigate the effects of the land size (lotsize)and house size (sqrft) on the house price (price) in a particular suburb, the following model

The subject property a two story residential in an average quality built in 1969. The structure has 1959 sq. ft. in above grade living area with attached garage area of 420 sq. ft. The house was built of frame with vinyl exterior wall with some brick in the front section of the house. It is typical house for the neighborhood built with average quality materials. Interior and exterior inspection of the house shows that it is well maintained and it is in average condition for its age. The house received update in terms of new built-in appliances and change in roof cover in the past seven to ten years. There have been no major additions or modifications to the structure. In addition, there is no indication that the structure was damaged from any natural or man-made causes.

It was the most adorable house I had ever seen! Thinking to myself, I thought that if the outside was perfect in everyway possible then how flawless could the inside be. After seeing the outside of the gorgeous 128 square foot for $15,000, I knew it would be a perfect match. The salesman led us inside, finishing any of my worry that I wouldn’t find a house of my own. It was enormous! Whoever designed and built this house did an excellent job on the kitchen layout. There was even a couch in the kitchen/dinning room/living area, all furniture and appliances included. Everything in the kitchen was on a single wall, leaving the rest of the ground floor to do what I want with it other than the bathroom. Surprisingly, the restroom was extensive for the amount of storage it had and the shower did not have a toilet in it and it had a door. The stairs were steep but not steep enough for me to be scared of falling out. Reaching the top and seeing into the loft allowed me to picture myself settling down in this baby house, maybe even getting a dog. The loft area wasn’t very interesting except the high ceilings and the fact that I could fit my queen size bed in there, but then I noticed a door. I opened it, thinking that it was just another closet. No, it was the deck! It was perfect in every way, shape, and form! I had my heart set on it, but then I was

Next, I stated the null (H0) and the alternative (H1) hypothesis for this data. Hypothesis testing involves the careful construction of two statements: the null and alternative. The null hypothesis holds that there will be no observed effect in our experiment. The alternative or experimental hypothesis holds that there will be an observed effect for our experiment. The following hypotheses are formulated below:

An important property of a test statistic is that we must be able to determine its sampling distribution under the null hypothesis, which allows us to calculate p-values.

x = # townhouses y = # single story z = # 2-story 1/6 x + 1/4 y + 1/2 z ! 60 40x + 50y + 60z ! 2880 25x + 30y + 40z ! 2400