Question:
What is the ‘secret sauce” behind HousingAlerts? Is there a way we can find out what metrics go into the algorithm that ranks these markets as “good” or “bad”?
Answer:
The ‘secret’ about our secret sauce is that it’s really not that secret!
There are 2 ways to analyze any (stock, bond, commodity, real estate, currency, etc) market:
By its “Fundamentals”
… or by its “Technicals”
We use Technical Analysis (TA).
TA has been around for 100’s of years. It’s used by every global financial firm on the planet to drive Trillions of dollars in daily financial trades.
I’ve been a TA expert for decades and spent most of my career doing a ton of Commercial, Residential and Land investing.
As a result of those two passions, I was able to “invent” a way to use TA for LOCAL real estate markets.
Unlike the stock and financial markets that change on a dime, real estate is exceptionally cyclical by comparison. That makes it very easy to use simple TA ‘studies’ to predict local market cycles with astonishing accuracy.
Anyone who understands TA ‘Studies’ would understand “…what metrics go into the algorithm that ranks these markets as “good” or “bad”?”
You raise a good point, but I don’t know how to resolve that question w/o making someone become a TA expert.
The PROOF of our accuracy is on every page. For example, you can see when our green Wealth Phases begin and end for every market over the last 30 to 40 years. Those are added automatically in real time. If they were off, you’d see it in the chart. We don’t go back and ‘edit’ them :blush:
I just did a Google search for “Technical Analysis” – this YT video might give you a good primer, assuming you want to go down that rabbit hole!
https://www.youtube.com/watch?v=rlZRtQkfK04
I would guess that 99% of the millions of sophisticated financial market investors who use TA every day to make Trillions of dollars in financial market decisions don’t understand the underlying math and intricacies that go into the many TA studies they use. It’s kind of like wanting to know aviation and aeronautics before flying in a plane.
It’s not necessary to be an expert in TA to benefit from it. In fact, we’ve worked very hard to make HousingAlerts simple to use by breaking it down into slider balls, color coded maps, green Wealth Phases and red/yellow/green lights.
Having said that, I’d encourage everyone to learn more about TA, if you have the time and desire!
