Is Big Data the next Big Thing?

We can all agree that technology has done wonders for the field of real estate. Within seconds, you can have all kinds of data, specifically big data, right in front of you almost instantly. Big data, as its name implies, is basically a huge set of data that requires extensive processing because it’s so big. You’re probably thinking, what does this have to do with real estate?  

Well, the possibilities are endless…

Once a big data set has been analyzed and the relevant information has been extracted (this process is called data mining),  it can be used to show you all kinds of trends that can be very useful for your real estate or property management business.  For example, a big data set that has housing information for your area can show you how the housing market has changed in the past year, while showing which specific factors may have contributed to it.

Analyzing these large data sets can also help you determine the potential value of a property based on data pertaining to similar properties. Depending on the type of data you have, you can develop an algorithm that can tell you which properties are good investments, and which are not so good.

It’s pretty clear that big data will eventually serve a much bigger purpose than predictive analysis and trend examination (even though these are huge in the real estate industry), the question is, what’s next?