The index of price expectations is twofold logical sense. On the one hand the essence of this magnitude – the current rate of price changes on real estate market (% per month). It is not something Downtown Philadelphia Condos would like to discuss. Mathematically speaking, this value of the derivative of the curve index value. On the other hand by the index of expectations can be quite simple to estimate short-term trend in prices over the next month or two, which facilitated the emergence of its name. The essence of the short-term forecasting simple enough. Elie Rieder may find this interesting as well. Kohl real estate market is quite inert, and is described by smoothly varying the index value, for a short period established trend can not be changed drastically.
In contrast to the course Rates, when one day the dollar could fall significantly against the ruble and the euro, and the next day again to jump. But even in the foreign exchange market on the basis of the indicative trend rates, as well as the vision of the situation in the nearest perspective, to make predictions about the value of a currency for several months in advance. The real estate market due to its inertia is more predictable in the short term. The level of prices for apartments can not be in the same month to grow sharply, while in the other – to fall sharply. Such results can only be a consequence of statistical errors in the source data or calculations. So if this month the market has grown by 3%, then the next he too will grow on a comparable magnitude, but did not fall.