Economic Indicators : U.S. Housing Forecasts : Predictions Based on the U.S. Census Data

Abstract

Forecasting is vital and has far-reaching impact on business performance and economic development. Housing price is a crucial indicator because it reflects the health of an economy. By using a linear regression model with autoregressive-moving-average components along with monthly / quarterly data dating back to 1975, we carried out forecasting on median housing prices and houses sold in various regions across the United States. Our model generated quality forecasts and allowed us to predict how U.S. housing prices and units sold may vary over the next few years.