Zestimate it!

By: Xxxxxx XxxxxxXxxxxxx XxxxXxxx Xxxxxxxxxxx

Is there a slowing housing market?

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

•$356,000.00 Zestimate•3 years old•4 bedrooms•4 bathrooms•3837 square-feet•1 (pool)

8349 Hamilton Lane

•$425,000.00 Zestimate •8 years old•5 bedrooms•4 bathrooms•5188 square- feet•0 (no pool)

2102 Dowelling Drive

Normality Graph

Taking observation 104 and 132 allows the normality to a marginally satisfactory level of 0.024

Regression Analysis: Price versus Age, Sq-Footage2, Pool, Age2 (Final Model)

The regression equation isPrice = 248306 - 19755 Age + 0.0107 Sq-Footage2 + 17513 Pool + 1310 Age2

 

Predictor Coef SE Coef T P VIFConstant 248306 18527 13.40 0.000Age -19755 6043 -3.27 0.001 61.573Sq-Footage2 0.0107076 0.0003508 30.52 0.000 1.069Pool 17513 4119 4.25 0.000 1.088Age2 1309.7 481.4 2.72 0.007 61.392

  

S = 15944.7 R-Sq = 89.2% R-Sq(adj) = 88.8%

Regression Equations Pool/No Pool

The regression equation for houses with a pool: 

Price = 265819 - 19755 Age + 0.0107 Sq-Footage2 + 1310 Age2

  The regression equation for houses without a

pool: 

Price = 248306 - 19755 Age + 0.0107 Sq-Footage2 + 1310 Age2

Houses for SaleHouses 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

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