Using Monte Carlo Simulation for Real Estate Price Valuation

Forecasting housing prices holds considerable importance in informing planning decisions at the individual level, within industries, and across the broader economy. Experts use housing prices to assess inflationary patterns or other economic crises. Given the uncertainty in the real estate industry, this study introduces a novel method for predicting home prices using a systematic and quantitative approach. The research employed Monte Carlo Simulation to provide valuable insights for the real estate sector, enabling better decision-making through increased predictive accuracy. This study emphasized using a Monte Carlo simulation as an effective approach for predicting housing values. This study's results showed that Monte Carlo simulations provide greater accuracy than multiple regression analysis in predicting home values. The Monte Carlo Simulation has proven reliable, effectively predicting property values with notable precision, consistency, and dependability.