Auction.com is launching a new monthly report, the ‘Nowcast,’ that it claims can predict home sales up to a month faster than the National Association of Realtors.
Leave it to Google to find new ways to use the stock piles of data they own on the US consumer. This time Google is using their data to predict trends in the housing market and real estate.
The Power of Search
Google is using our search data to predict the housing market in real-time. Google invested 50M into auction.com in hopes of obtain valuable data related to the housing markets. By using Google search data and overlaying them over the auction.com search results, Google claims they can predict housing data about a month faster than any other entity.
Welcome Contemporaneous Forecasting
This type of data modeling comes from Google’s chief economist Hal Varian. He dubs “contemporaneous forecasting” as the ability to predict what is happening while it is happening.
Google is basically taking their access to the data from auction.com and applying the same principles to it that are used to power the publicly available “Google Trends”.
The Advantages of Real Time Housing Data
Being able to get this type of data in real-time could be extremely important for investors and financial services companies. As with any type of investing, knowledge is power and knowing whether or not an industry is on the upswing or down swing could make for some powerful financial decision making.