Question:
Do you have any national new construction data, new home sold, booming new single family home construction markets, trends, new home construction cost per sq. ft. in different US Markets, etc?
Answer:
Funny you ask about those specific Fundamental data sets!
In fact, we’re building a very big platform that will provide all kinds of Fundamental data, nicely charted, analyzed and mapped. It’s a huge project. We’ve spent tens of thousands just on the mapping feature, but it’ll drill down to county and zip code level (where the data is available in such granularity).
It’s a huge project and won’t be released in Beta form for some months to come.
Having said that, you should also know that those specific Fundy data sets are often misleading, as are most other Fundamental data.
For example, areas with high building permits and new construction often indicate strong growth, but I’ve seen firsthand where it also leads to an oversupply and negative home price appreciation. In other words, it can also be a contra-indicator and a warning sign. Ocala, FL (my home market) was a perfect example.
The problem with Fundy data is that it offers no trigger signals and can be near-impossible to give CONSISTENT, reliable interpretations.
But, having the right Fundy data in the right hands can help confirm what the Technical Analysis (TA) charts are telling you.
The great thing about TA is that it ALREADY incorporates EVERYTHING that affects home price appreciation or depreciation. If new construction is a positive indicator in a certain market at a certain time period, then guess what? …it will show in the TA.
If any particular Fundy data is a contra or negative indicator, then guess what? ..yes, it’ll all be reflected in the TA.
TA has been back-tested and shown to be accurate for local real estate cycles. No need to guess if all the new construction, for example, is a good thing or bad thing – it’ll show in the charts.
Same for any other Fundamental element, TA (by definition) incorporates any and all factors that affect the local real estate cycle and appreciation or decline.
