Bayesian Models Accurately Predict US Housing Market Downturns, Saving Homeowners Millions.
The article predicts housing market downturns in the US using a Bayesian approach. Researchers analyzed data from 20 states from 1976 to 2006 and found that Bayesian models outperformed classical models in forecasting real house price growth. These models accurately predicted downturns in 18 out of 19 states during the recent period of 2007 to 2008.