Improved Information Shock and Price Dispersion: A Natural Experiment in the Housing Market

2015 ◽  
Author(s):  
Danny Ben-Shahar ◽  
Roni Golan ◽  
Elad Kravi
Keyword(s):  
Housing Market ◽  
Natural Experiment ◽  
Price Dispersion

The search and matching process in the housing market

2019 ◽  
Vol 12 (3) ◽  
pp. 380-391
Author(s):  
Gaetano Lisi
Keyword(s):  
Housing Market ◽  
Price Dispersion ◽  
House Price ◽  
Price Volatility ◽  
Housing Tenure ◽  
Search Process ◽  
Search And Matching ◽  
Tenure Status ◽  
Content Type ◽  
Matching Process

Purpose This paper aims to study the phenomenon known as “house price dispersion”, one of the most important distinctive features of housing markets. House price dispersion refers to the phenomenon of selling two houses with very similar attributes and in near locations at the same time but at very different prices. Design/methodology/approach This theoretical paper makes use of a search and matching model of the housing market. The search and matching models are the benchmark models of the “matching” markets, such as the labour market and the housing market, where trade is a decentralised, uncoordinated and time-consuming economic activity. Findings Unlike the previous related literature that attributes to the heterogeneity of buyers and sellers a significant part of the price volatility, in this paper, the house price dispersion depends on the housing tenure status of home-seekers in the house search process. Indeed, in the presence of different housing tenure status of home-seekers, the house search process leads to different types of matching. In turn, this implies different surpluses (the sum of the net gains of the parties involved in the trade), and eventually, different surpluses produce different prices of equilibrium. Research limitations/implications An interesting research agenda for future works would be an extension of the model to study the effect of “online housing search” on the house search and matching process, and thus, on the house price dispersion. Practical implications The main practical implication of this work is that the house price dispersion is an inherent phenomenon in the house search and matching process. Originality/value None of the existing and related works of research have considered how to take advantage of the search and matching approach to deal with the phenomenon known as “house price dispersion”, without relying on the ex ante heterogeneity of the parties but looking at the “core” of the house search and matching process.

Optimal Pricing Strategy in the Case of Price Dispersion: New Evidence from the Tokyo Housing Market

2012 ◽  
Vol 40 ◽  
pp. S234-S272 ◽  
Author(s):  
Yongheng Deng ◽  
Stuart A. Gabriel ◽  
Kiyohiko G. Nishimura ◽  
Diehang Della Zheng
Keyword(s):  
Housing Market ◽  
Price Dispersion ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Optimal Pricing Strategy ◽  
New Evidence

Challenging the Discourse around the Impacts of Airbnb through Suburbs Not Cities: Lessons from Australia and COVID-19

2021 ◽  
Vol 8 (1) ◽  
pp. 141-149
Author(s):  
Caitlin Buckle ◽  
◽  
Peter Phibbs ◽  
Keyword(s):  
Housing Market ◽  
Natural Experiment ◽  
Housing Markets ◽  
Local Communities ◽  
Short Term ◽  
City Governments ◽  
Rental Markets ◽  
The Impact

Supporters of short-term rental (STR) platforms state that STRs represent a small fraction of the housing market of major cities and therefore have little impact on rents. However, there is emerging evidence that suggests that STRs have highly localised impacts. In this article, we use the natural experiment of the pause in tourism caused by the COVID-19 pandemic to highlight the impact of a decrease in STR listings on rental markets in the case study city of Hobart, Australia. We find that rental affordability has improved in Hobart’s STR-dense suburbs with the increased vacancies from the underutilised STR properties. These results provide evidence of the impact of STRs on local housing markets when analysed on a finer scale than the whole-of-city approach. The focus on local housing markets helps local communities and city governments build an argument for the impact of STRs on tight housing markets.

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (1) ◽  
pp. 47-62
Author(s):  
Gaetano Lisi ◽  
Keyword(s):  
Theoretical Model ◽  
Real Estate ◽  
Housing Market ◽  
Price Dispersion ◽  
Search Process ◽  
Matching Model ◽  
Rental Market ◽  
Property Sales ◽  
The Impact ◽  
The Relationship

The housing market matching model in this paper considers two types of home-seekers: people who search for a house both in the rental and the homeownership markets, and people who only search in the homeownership market. The house-search process leads to several types of matching and in turn, this implies different prices of equilibrium. Also, the house-search process connects the rental market with the homeownership market. This model is thus able to explain both the relationship between the rental and the selling prices and the price dispersion which exists in the housing market. Furthermore, this theoretical model can be used to study the impact of taxation in the two markets. Precisely, it is straightforward for showing the effects of two different taxes: tax on property sales and tax on rental income.

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