Enabling the Residential Property Index
Ventana and Radar Logic have developed a methodology for examining the vast amount of data that exists in the real estate market. Our patent-pending1,2 technology harnesses powerful methods of analysis from fundamental nuclear physics and innovations in statistical analysis in order to translate this data into the Radar Logic Daily™Prices, an accurate reflection of the values paid in actual arm’s-length real estate transactions.
The RPX was developed to meet the following goals:
- To capture and utilize as much data as possible,
- To avoid manipulation of the Prices by illegitimate or erroneous data,
- To react as the market moves, not in a delayed or “smoothed” fashion,
- To reflect data driven values regardless of actual data volume, and
- To provide a price for the market every trading day.
Using data gathered from public source records, our proprietary algorithms leverage techniques from nuclear and atomic spectroscopy to determine the Radar Logic Daily Price as a single value representing the price per square foot paid for residential real estate in a defined Metropolitan Statistical Area (MSA) on any given day.
Financial instruments based on the Daily Prices are offered and traded in the Residential Property Index™ (RPX™) market, one of the fastest-growing derivatives markets ever.
For a list of dealers licensed to offer products in the RPX market, please visit the Radar Logic web site.
A technical description of the methodology is available for download below.
1. M. A. Kagarlis et al., US Patent Applications 20080167889, 20080168002, 20080168004, Price Indexing, July 10, 2008
2. M. A. Kagarlis et al., US Patent Application 20080167941, Real Estate Price Indexing, July 10, 2008
- Real Estate Index Method Description | ventana_radar_logic_real_estate_index_method.pdf