Prediction of prices in housing market with the correlation-regression methods

Abstract

In the present paper, the positive dynamics in activity in the construction sector and real estate market is analyzed and is noted that it is required to increase the amount of provided realtor services and the improvement of quality to consumers. We should note that the analyzes of the paper allow one to assess productive characteristics and closeness of relationships between various factors (the price per 1 m2 of residential real estate in the primary and secondary markets). Unfortunately, in the Republic of Azerbaijan offering the formation of such a mechanism is impossible. İn the real estate market often we meet inexperienced brokers and sometimes buying and selling operations are accompanied by the risks and losses, including speculative transactions. Of course, in our country, there is a need to establish a system that has been adapted to the characteristics of the local market and similar to the above-mentioned system. It should be noted that the level of real estate services market and its development, the characteristics of the national economy and improving its structure reflects the level of development. It is no coincidence that in the context of the realities of real estate market in many of developed countries the formation of a market economy and the deepening of economic relations are reviewed as important factors stimulating the development of other sectors of the national economy. Azerbaijan's real estate market would be advisable to use more advanced methods to study the experience of foreign countries in this field and it would be very useful to take serious steps to benefit from it.