Top 10 Equations for Analyzing Home Prices!

What does a "sellers'" or "buyers' market" mean? Is it not the case that for every buyer there is a seller? A buyers' market only make sense in terms of other comparable properties from a different market. For example:

• Is real estate overpriced today compared to in the past?
• Is real estate or the stock market a better investment?
• Is it better to rent or buy in Norfolk, VA?

This series describes the math behind our mortgage calculator. Are ten equations not exactly good clickbait for you? Then let our $nth mortgage calculator do the math for you!

Although it is east to get lost in the sauce, the themes are simple. (1) Think like a tenant and a landlord, not like a homeowner. (2) Understand how rent and expenses affect the reference point for prices. (3) Mathematically compare cash flow and equity buildup to stock dividends and capital gains.

1. Mortgage Months Ratio (R_N)
2. Price Floor (C=1) Model
   3. Price to Rent Ratio (C)
4. Cash Flow Power (Q_n)
5. Equity Buildup (Σ_n)
6. Mortage Performance (Y_n)
   7. Optimum Leverage Ratio (L)
8. Refinance Period (n)
   9. Cardano Tangent
10. Price to Earnings Ratio