True or False: Price deviations from estimated market values are termed 'noise'.

Price deviations from estimated market values are referred to as 'noise' in the context of real estate and financial markets. This term signifies fluctuations that can obscure the true market value of a property. It represents random variations that are often caused by external factors, investor psychology, or non-fundamental influences that do not reflect the intrinsic value of the asset.

In real estate, noise can manifest in various ways, such as sudden price spikes, drops due to market sentiment, or temporary market disruptions caused by factors unrelated to actual property conditions or economic fundamentals. Recognizing these deviations as noise allows investors and analysts to better distinguish between temporary anomalies and true market trends, enabling more informed decision-making. Understanding this concept is crucial for grasping how market psychology can affect property values and for developing strategies to mitigate its impacts on investment returns.