Home Price Floor Fundamental™


Home Price Floor Fundamental™ identifies the lowest price level a house could fall to.

Home Price Floor Fundamental™ is based on the premise that since a house can produce rental income it’s always going to be worth something. What it’s worth depends upon a number of factors, the most important being the yield or Cap rate an investor would expect.

While Home Price Floor Fundamental™identifies the bottom price level of a house, use Home Price Ceiling Fundamental™ to find out how high home prices in an area rise until they reach unsustainable levels.

Actual sales prices of homes will move up and down between the Ceiling and the Floor in normal markets and are influenced by other fundamentals including supply and demand.

Home prices in bubble areas blasted through the Ceiling and are now in the process of falling back to house values between the Ceiling and the Floor.

Use Home Price Market Fundamentals™to get a sense of home value movement between the Floor and Ceiling.

Click here to read a detailed explanation of the Home Price Floor Fundamental™



Sell the Ceiling; Buy the Floor

What is the property worth as an income asset?
$0.00
Rental Income
Market rent of property per month: $
Annual income: $0.00
Minus vacancy allowance: % $0.00
Annual rental income: $0.00

Monthly Expenses
Property taxes: $
Insurance: $
Maintenance: $
Homeowner's dues: $
Miscellaneous: $
Total monthly expenses: $0.00
Annual expenses before debt service: $0.00

Annual Net Rental Income before debt service: $0.00

Investor Expectations
Capitalization Rate: %
   
Value of property as income asset
$0.00
Home | Housing Research | Commentary & Analysis | Foreclosure Race | Home Value Fundamentals
Email articles to us | Contact Us | Privacy Policy | Terms of Use | US Housing Market News | Articles

© Copyright 2008. USHousingMeltdown.org. All Rights Reserved.