Software Glitch Inflates Chicago Real Estate Pricing

Computers are always right, huh? No, not always. Computers are only as good as the people inputting data into them. And in this particular case, a lot of relevant data was omitted from a software program used to calculate historical data for real estate in the Chicago area.

Inman News reports this:

The program failed to recognize some data fields and subsequently eliminated an average of 11 percent of records per month beginning in November 2010. The error resulted in monthly median home prices elevated by as much as 25.5 percent.

They say, the result was an erroneous inflation of pricing by as much as 25.5%.

Wow, enough said.

You can get more details here.

One thought on “Software Glitch Inflates Chicago Real Estate Pricing

  1. Due to the numbers of properties and the relative inexperience of and limited due diligence by the RTC in some areas of the country, a once-in- a-lifetime real estate investment opportunity did fall into the lap of savvy rental property investors who had large amounts of cash, could act quickly, and then had the financial horsepower to ride out the market downturn.

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