Hortons Realty Paper

Overview

Sample size

We analyzed 518 units of house sold in DFW in 2010. The data includes details of sales by Horton and other agencies.

Price

By agency, the average sale price of houses achieved by agency Horton is approx. $174k, and the price by other agencies is higher than Horton, approx. $188k.

By location, the average sale price of house in DFW metroplex in 2010 is approx. $187k, however the prices differ dramatically depending on the region, Dallas $298k, Fort Worth $168k and elsewhere in DFW metroplex approx. $167k.

By quarter, the average price dropped by 12% in 2010, from $198k in the first quarter to $174k in the last quarter. The quarterly sales in DFW metroplex region also dropped in 2010, from 141 units in the first quarter to 120 units in the fourth.

Sales

By agency, out of 518 samples, Horton sold 49 units accounting for 9.5%, and other agencies sold 469 units totaling 90.5%.

By location, in DFW metroplex region, Dallas topped the sales, 243 units achieving 47%, Fort Worth sold 166 units 32%, and the rest of the region achieved 109 units and 21% of total sales.

House size and age

The average size house sold in DFW metroplex is 1870 square feet and average age 6.18 years varies from 1 year to 13 years. The average square feet of house sold by Horton is slightly higher than other agencies, 1907 vs 1866. The average age of houses between Horton and other agencies was similar, approx. 6.18 years.

Horton’s and the Market

In assessing whether Horton Realty is underpricing their properties, the intuitive question, of whether their mean sales price is lower than that of their competitors, indicates that the answer is yes. The side-by-side box plots below illustrate this conclusion.

By simple eye balling we can conclude that the averages are not same. We performed an independent sample T-test to confirm this statistically, the business conclusion is as follows. (The step by step analysis of the T-test can be found in the appendix)....