scholarly journals Measuring heterogeneity of house price developments in Hungary, 1990–2016

2018 ◽  
Vol 68 (3) ◽  
pp. 377-414
Author(s):  
Ádám Banai ◽  
Nikolett Vágó ◽  
Sándor Winkler
Keyword(s):  
Time Series ◽  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Price Indices ◽  
Regional Heterogeneity ◽  
Economic Cycles ◽  
House Price Indices ◽  
Long Time ◽  
Index Family

This study presents the detailed methodology of generating house price indices for the Hungarian market. The index family is an expansion of the Hungarian housing market statistics in several regards. The nationwide index is derived from a database starting from 1990, and thus the national index is regarded as the longest in comparison to the house price indices available so far. The long time series allow us to observe and compare the real levels of house prices across economic cycles. Another important innovation of this index family is its ability to capture house developments by regions and settlement types, which sheds light on the strong regional heterogeneity underlying the Hungarian housing market.

scholarly journals A RE-ASSESSMENT OF HOUSE PRICE INDICES: EVIDENCE FROM THE SPANISH MARKET

2018 ◽  
Vol 23 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Paloma Taltavull de la Paz ◽  
Stanley McGreal
Keyword(s):  
Housing Market ◽  
Structural Changes ◽  
Price Index ◽  
House Price ◽  
Housing Quality ◽  
Quality Changes ◽  
Large Database ◽  
Price Indices ◽  
House Price Indices ◽  
Hedonic Index

This paper using evidence from the Spanish housing market contributes significantly to the debate concerning the different results obtained from house price indices depending on the method used to build the index. Utilising a large database over the period 1994 to 2012, the paper constructs a time dummy hedonic index (HD) and an imputed hedonic index using a Laspeyres approach (HI), and compares the different effect on the price index evolution. The paper discusses control by quality changes and identifies those attributes experiencing structural changes over the analysis period, identified by the HI index but not by the HD index. Results indicate that changes in quality stem from socio-demographic conditions rather than changes to housing quality (other than size). The paper also shows that improvements in neighbourhood quality rather than change in a ‘typical house’ affects house price and argues that these considerations are important in both the method selected to calculate house price indices and the application of the methodology to estimate price changes.

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (1) ◽  
pp. 109-135
Author(s):  
Marsha J. Courchane ◽  
◽  
Cynthia Holmes ◽  
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
House Prices ◽  
House Price ◽  
Price Indices ◽  
Real Estate Markets ◽  
House Price Indices ◽  
Mortgage Interest Rates ◽  
Precipitous Decline ◽  
The U.S

Canadian and U.S. real estate markets have compared similarly along dimensions such as inflation, mortgage interest rates, population and income growth and other measures. With respect to house prices, however, the series have moved in similar ways at some times, but then significantly diverged by the second quarter of 2007. For example, Canadian and U.S. house price indices reached essentially identical levels in 1987Q2, 1995Q1 and 2007Q2. As a consequence of the U.S. financial crisis and precipitous decline in house prices, the U.S. and Canadian indices have sharply diverged. Our paper examines whether or not the house price indices were driven by fundamentals during these time periods, or whether they diverged from fundamentals. We find that the U.S. house prices closely aligned with fundamentals until the mortgage markets crashed in 2008. We find that Canadian house prices continue to align with fundamentals. However, there have been some significant market changes between the two countries and key housing market measures indicate that Canadian markets are now moving along some paths similar to those taken by the U.S. prior to the crash.

scholarly journals Estimating repeat sales residential price indices for Krakow

2018 ◽  
Vol 9 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Michał Głuszak ◽  
Jarosław Czerski ◽  
Robert Zygmunt
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Price Index ◽  
Metropolitan Areas ◽  
House Price ◽  
Small Sample ◽  
Main Concern ◽  
Repeat Sales ◽  
Price Indices ◽  
House Price Indices

Research background: There are several methods to construct a price index for infrequently traded real estate assets (mainly residential, but also office and land). The main concern to construct a valid and unbiased price index is to address the problem of heterogeneity of real estate or put differently to control for both observable and unobservable quality attributes. The one most frequently used is probably the hedonic regression methodology (classic, but recently also spatial and quantile regression). An alternative approach to control for unobservable differences in assets’ quality is provided by repeat sales methodology, where price changes are tracked based on differences in prices of given asset sold twice (or multiple times) within the study period. The latter approach is applied in renown S&P CoreLogic Case-Shiller house price indices. Purpose of the article: The goal of the paper is to assess the applicability of repeat sales methodology for a major housing market in Poland. Previous studies used the hedonic methodology or mix adjustment techniques, and applied for major metropolitan areas. The most widely known example is the set of quarterly house price indices constructed by NBP — especially for the primary and secondary market. The repeat sales methodology has not been adopted with significant success to date — mainly because of concern regarding relative infrequency of transactions on the housing market in most metropolitan areas (thus a potentially small sample of repeated sales). Methods: The study uses data on repeat sales of residential transactions in Krakow from 2003 to 2015. We apply different specifications of repeat sales index construction and compare respective values to the hedonic price index for Krakow estimated by NBP. Findings & Value added: Findings suggest that repeat sales house sales indices can be used to track price dynamics for major metropolitan areas in Poland. The study suggests problems that need to be addressed in order to get unbiased results — mainly data collection mechanism and estimation procedure.

scholarly journals DYNAMIC INTERACTION BETWEEN HOUSE PRICES AND STOCK PRICES IN MALAYSIA

2014 ◽  
Vol 18 (2) ◽  
pp. 163-177 ◽  
Author(s):  
Hooi Hooi Lean ◽  
Russell Smyth
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Stock Prices ◽  
House Prices ◽  
House Price ◽  
Dynamic Interaction ◽  
Kuala Lumpur ◽  
Price Indices ◽  
House Price Indices ◽  
Causality Testing

This paper examines the dynamic linkages between house price indices, interest rates and stock prices in Malaysia using cointegration and Granger causality testing. For Malaysia as a whole, we find that house prices, stock prices and interest rates are not cointegrated. For Kuala Lumpur, Penang and Selangor we find that house prices, stock prices and interest rates are cointegrated for 40% of the house price indices. When there is evidence of cointegration in these regions, we find that stock prices lead house prices. While there are alternative potential reasons for this finding, such as slow adjustment of house prices in response to a shock in the fundamentals, it is consistent with a wealth effect. A likely explanation for this result is that in these states, compared with the Malaysian average, housing is expensive, income is high and real estate is used much more as an investment vehicle by both wealthy Malaysians and foreigners leveraging of the share market.

scholarly journals More Reliable Land Price Index: Is There a Slope Effect?

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 261
Author(s):  
Yi Huang ◽  
Geoffrey Hewings
Keyword(s):  
Land Use ◽  
Price Index ◽  
House Price ◽  
Land Values ◽  
Price Indices ◽  
Land Price ◽  
House Price Indices ◽  
Physical Attributes ◽  
Constant Quality

This paper focuses on the physical attributes of land that intrinsically limit land use and possibly affect land values. In particular, we investigate if the slope of a land does decrease its price and investigate the role of land slope in forming more reliable constant-quality land price indices and aggregate house price indices. We find that, while land slopes do decrease the land price per unit, they have a small effect on the quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.

scholarly journals The role and significance of planning in the determination of house prices in Australia: Recent policy debates

2021 ◽  
pp. 0308518X2198894
Author(s):  
Peter Phibbs ◽  
Nicole Gurran
Keyword(s):  
Land Use ◽  
Housing Market ◽  
Land Use Planning ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Evidence Base ◽  
Urban Housing ◽  
Price Inflation ◽  
Depth Analysis

On the world stage, Australian cities have been punching above their weight in global indexes of housing prices, sparking heated debates about the causes of and remedies for, sustained house price inflation. This paper examines the evidence base underpinning such debates, and the policy claims made by key commentators and stakeholders. With reference to the wider context of Australia’s housing market over a 20 year period, as well as an in depth analysis of a research paper by Australia’s central Reserve Bank, we show how economic theories commonly position land use planning as a primary driver of new supply constraints but overlook other explanations for housing market behavior. In doing so, we offer an alternative understanding of urban housing markets and land use planning interventions as a basis for more effective policy intervention in Australian and other world cities.

scholarly journals Structural Breaks and Explosive Behavior in the Long-Run: The Case of Australian Real House Prices, 1870–2020

2021 ◽  
Vol 15 (1) ◽  
pp. 72-84
Author(s):  
Vicente Esteve ◽  
Maria A. Prats
Keyword(s):  
Time Series ◽  
Unit Root ◽  
Structural Breaks ◽  
House Prices ◽  
Unit Root Tests ◽  
Annual Data ◽  
Bubble Behavior ◽  
Long Period ◽  
Long Run ◽  
Long Time

Abstract In this article, we use tests of explosive behavior in real house prices with annual data for the case of Australia for the period 1870–2020. The main contribution of this paper is the use of very long time series. It is important to use longer span data because it offers more powerful econometric results. To detect episodes of potential explosive behavior in house prices over this long period, we use the recursive unit root tests for explosiveness proposed by Phillips et al. (2011), (2015a,b). According to the results, there is a clear speculative bubble behavior in real house prices between 1997 and 2020, speculative process that has not yet been adjusted.

scholarly journals Are There Any Housing Bubbles in Turkey?

2021 ◽  
Author(s):  
Özge Korkmaz ◽  
Ebru Çağlayan Akay ◽  
Hoşeng Bülbül
Keyword(s):  
Housing Market ◽  
House Prices ◽  
Housing Prices ◽  
Housing Price ◽  
Economic Fundamentals ◽  
The Past ◽  
Price Increases ◽  
Long Time ◽  
Housing Bubbles ◽  
Turkish Lira

It is very important that the housing market, which meets the most basic need of people is needed for shelter from the past to the present, has a stable structure. The instability structure of the housing market is generally associated with the presence of housing bubbles. The deviation of housing prices from their basic value and not being able to be explained by economic fundamentals leads to the formation of housing bubbles. Housing bubbles can lead to permanent losses, as it may take a long time to return to normal prices. For Turkey as a developing country, it is important to identify an unstable structure in house prices discuss the basic economic factors related to this. After the global increases in housing prices, inflation, and depreciation in the Turkish lira, Turkey has become the country with the highest housing price increases globally in 2020. In the study, the presence of bubbles in the housing market for Ankara, Izmir, Istanbul, and Turkey in general, was investigated by SADF and GSADF unit root tests for the period 2010:01-2021:02. In this context, the study examines the presence of bubbles in housing prices for Ankara, Izmir, Istanbul, and Turkey in general, which are the three cities with the highest price increases. As a result of the study, the presence of bubbles in the housing market has been determined for Ankara, Istanbul, Izmir, and Turkey in general.

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