Trending Analysis

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    Trending Analysis

    Resources:

    Create an Excel® document in which you include the following:

    • Paste from “Median and Average Sale Price of Houses Sold”, Price Ann sheet, the Period and Median Price columns (column A and B respectively), starting from year 1963.
    • On a third column, calculate Index, taking into assumption that for year 1984 it is 100. Format it to 1 decimal place. Name it “House Price Index.”
    • For example, for year 1983, the index will be calculated based on median price of 1983 vs. 1984 (e.g. 94.2).
    • As a second example, for year 1985, the index will be calculated based on median price of 1985 vs. 1986 (e.g. 105.5).
    • On a fourth column, paste from “Annual U.S. CPI (includes CPI-U and CPI-W)”, the Index column (column B) starting from 1963.  Name it “Consumer Price Index.”
    • Create a line chart, plotting “House Price Index” and “Consumer Price Index” for each year, starting from 1963. Year will be the X Axis. Price Index will be the Y Axis.
    • Save the Excel® document for submission.

    Compose a minimum 1,050-word report in which you address the following:

    • Analyze the correlation between “House Price Index” and “Consumer Price Index.”
    • Evaluate conditions of abrupt median price change and correlate to a historical event (e.g. 2006).
    • Predict the trend for “House Price Index” for the next few years.
    • Synthesize your predictions in regards to the current market conditions based on the “House Price Index” vs. “Consumer Price Index.”
    • Analyze the median income increase in the last 10 to 20 years. Correlate with the graph you have created and assess your findings.

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