Real Estate Price Analysis with LSTM Prediction

Understanding LSTM in This App

What is LSTM? LSTM (Long Short-Term Memory) is a type of neural network designed for time-series data, like housing prices. It excels at capturing patterns in sequential data, making it ideal for predicting future values based on historical trends.

How is it used here?

• The LSTM model uses housing price data since January 2000 for the selected ZIP code.
• It takes a 60-month lookback window (5 years) of historical prices to predict the next month's price.
• The model learns trends, such as seasonal changes or long-term growth.
• 'LSTM Fit on Training Data' shows how well the model learned the patterns in the historical data it was trained on.
• 'LSTM Predictions on Hold-out Data' shows the model's predictions for a recent period of actual prices that it wasn't trained on, to evaluate its forecasting ability.
• 'LSTM Future Predictions' shows the model's predictions for months beyond the available historical data.