Don't Ask, Don't Tell: The Impact of Real Estate Agents on House Prices Near Environmental Disamenities

2005 ◽  
Author(s):  
Diane Hite ◽  
Andres Jauregui
Keyword(s):  
Real Estate ◽  
House Prices ◽  
Don't Ask Don't Tell ◽  
Real Estate Agents ◽  
The Impact ◽  
Environmental Disamenities

Foreign investment in Australian residential properties

2019 ◽  
Vol 12 (2) ◽  
pp. 166-180 ◽  
Author(s):  
Hassan F. Gholipour ◽  
Hooi Hooi Lean ◽  
Reza Tajaddini ◽  
Anh Khoi Pham
Keyword(s):  
Real Estate ◽  
Foreign Investment ◽  
House Prices ◽  
Real Estate Market ◽  
Housing Development ◽  
Housing Construction ◽  
Annual Data ◽  
Content Type ◽  
Residential Properties ◽  
The Impact

Purpose The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of the housing construction sector. Design/methodology/approach The analysis is based on a panel cointegration method, estimated using annual data for all Australian states and territories spanning the period of 1990-2013. Findings The results indicate that increases in foreign investment in existing houses do not significantly lead to increases in house prices. On the other hand, a 10 per cent increase in foreign investment for housing development decreases house prices by 1.95 per cent. We also find that foreign real estate investments have a positive impact on housing construction activities in the long run. Originality/value Existing studies used aggregate foreign real estate investment in their analyses. As foreign investment in existing houses and foreign investment for housing development have different impacts on the demand and supply sides of housing market, it is crucial that the analysis of the effects of foreign investment in residential properties on real estate market is conducted for each type differently.

scholarly journals Modelling the impact of earthquake activity on real estate values: a multi-level approach

2017 ◽  
Vol 10 (1) ◽  
pp. 73-90 ◽  
Author(s):  
Berna Keskin ◽  
Richard Dunning ◽  
Craig Watkins
Keyword(s):  
Real Estate ◽  
Perceived Risk ◽  
House Prices ◽  
Insurance Companies ◽  
Earthquake Risk ◽  
Earthquake Activity ◽  
Content Type ◽  
Multi Level ◽  
Environmental Events ◽  
The Impact

Purpose This paper aims to explore the impact of a recent earthquake activity on house prices and their spatial distribution in the Istanbul housing market. Design/methodology/approach The paper uses a multi-level approach within an event study framework to model changes in the pattern of house prices in Istanbul. The model allows the isolation of the effects of earthquake risk and explores the differential impact in different submarkets in two study periods – one before (2007) and one after (2012) recent earthquake activity in the Van region, which although in Eastern Turkey served to alter the perceptions of risk through the wider geographic region. Findings The analysis shows that there are variations in the size of price discounts in submarkets resulting from the differential influence of a recent earthquake activity on perceived risk of damage. The model results show that the spatial impacts of these changes are not transmitted evenly across the study area. Rather it is clear that submarkets at the cheaper end of the market have proportionately larger negative impacts on real estate values. Research limitations/implications The robustness of the models would be enhanced by the addition of further spatial levels and larger data sets. Practical implications The methods introduced in this study can be used by real estate agents, valuers and insurance companies to help them more accurately assess the likely impacts of changes in the perceived risk of earthquake activity (or other environmental events such as flooding) on the formation of house prices in different market segments. Social implications The application of these methods is intended to inform a fairer approach to setting insurance premiums and a better basis for determining policy interventions and public investment designed to mitigate potential earthquake risk. Originality/value The paper represents an attempt to develop a novel extension of the standard use of hedonic models in event studies to investigate the impact of natural disasters on real estate values. The value of the approach is that it is able to better capture the granularity of the spatial effects of environmental events than the standard approach.

The Impact of the COVID-19 Pandemic on the Private Rental Housing Market in Poland: What Do Experts Say and What Do Actual Data Show?

2021 ◽  
Vol 8 (1) ◽  
pp. 24-35
Author(s):  
Mateusz Tomal ◽  
◽  
Bartłomiej Marona ◽  
Keyword(s):  
Real Estate ◽  
Rental Housing ◽  
Objective Data ◽  
Rental Market ◽  
The Third ◽  
Real Estate Agents ◽  
The Impact ◽  
The City ◽  
Second Wave ◽  
Rental Housing Market

The aim of the article is to determine the impact of the COVID-19 pandemic on the level of housing rents using the example of the City of Krakow. This study is based on objective data on rental prices and subjective information obtained from real estate agents using a questionnaire survey. The research revealed that the first wave of the COVID-19 pandemic actually led to a 6-7% decrease in prices in the rental market in Krakow, while at the same time the surveyed real estate agents had estimated that rents would drop by about 13%. With the second wave of the pandemic, it is possible to see that its immediate impact, i.e. between the third and fourth quarter of 2020, has led to a further 6.25% drop in rents. It should be noted that the latter decrease was very accurately predicted, both by the survey respondents and by the econometric models used. Finally, the results of the analysis also indicated that the worsening of the pandemic in the last quarter of 2020 will have a significant impact on rent levels in Krakow for all of next year. Regardless of how the economy develops, rental prices are forecast to fall further in 2021q1. However, in the subsequent quarters of 2021, rents are projected to increase, but ultimately their level will not return to pre-pandemic values even in 2021q4. The latter is likely to happen only in the second half of 2022.

scholarly journals The Relevance of EPC Labels in the Spanish Residential Market: The Perspective of Real Estate Agents

Buildings ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 27 ◽  
Author(s):  
Carlos Marmolejo-Duarte ◽  
Silvia Spairani Berrio ◽  
Consuelo Del Moral-Ávila ◽  
Luís Delgado Méndez
Keyword(s):  
Real Estate ◽  
Supply And Demand ◽  
Energy Performance ◽  
Policy Changes ◽  
Environmental Implications ◽  
Weak Supervision ◽  
Real Estate Agents ◽  
Marketing Variables ◽  
Residential Market ◽  
The Impact

Assessment regarding the impact of Energy Performance Certificates (EPC) on the residential market is largely inconclusive; while the majority of hedonic analyses have found EPC ratings to be correlated with prices, opinion-based research has found a negligible impact on prices and other marketing variables. Using the opinion of qualified real estate agents, this paper explores whether, in Spain, EPC labels play any role in housing marketing, as well as the policy changes required to foster efficient dwellings. The results reveal a large misunderstanding of the EPC labels, since they are seen as a global home-quality indicator, while their impact on residential marketing is quite poor. Apparently, both supply and demand place a small interest in energy performance, although it is slightly larger for sellers/buyers in relation to lenders/tenants. In any case, EPC labels are far from blurring the energy information asymmetry, since most of the buyers/tenants are informed of the EPC rating after having selected their home. Overall, the EPC scheme has a poor reputation exacerbated by inaccuracies, unintelligible units to express the financial and environmental implications of energy efficiency, and an apparent weak supervision. These findings stress the need to improve the scheme; in doing so, realtors suggest the need for some companion policies.

scholarly journals How do house prices respond to mortgage supply?

2020 ◽  
Author(s):  
Guglielmo Barone ◽  
Francesco David ◽  
Guido de Blasio ◽  
Sauro Mocetti
Keyword(s):  
Real Estate ◽  
Spatial Heterogeneity ◽  
Causal Effect ◽  
House Prices ◽  
Data Driven ◽  
Supply Curve ◽  
Housing Supply ◽  
External Finance ◽  
The Impact

Abstract We examine the impact of household mortgages on house prices. Using biannual data on Italian cities in the period 2003–2015, we build an exogenous and fully data-driven indicator of mortgage supply stance and use it as instrument for actual extended mortgages. Our results indicate that mortgages have a positive and significant causal effect on house prices, with an estimated elasticity of around 0.1. The estimated effect is larger during the expansionary phase of the housing cycle. We also find evidence of significant spatial heterogeneity: mortgages push real estate values more in cities where the housing supply curve is less elastic or households are more dependent on external finance.

scholarly journals International Real Estate Review

2007 ◽  
Vol 10 (2) ◽  
pp. 113-130
Author(s):  
Benoit Julien ◽  
◽  
Paul Lanoie ◽  
Keyword(s):  
Real Estate ◽  
Negative Impact ◽  
House Prices ◽  
Real Estate Market ◽  
Data Set ◽  
Long Run ◽  
Before And After ◽  
Short Run ◽  
Noise Barrier ◽  
The Impact

This paper provides the first study on the impact of noise barriers on the price of adjacent houses based on a repeat sale analysis (RSA). RSA allows us to empirically examine the differential between the prices of houses sold before and after an event that may have affected their value, and after other relevant variables such as the evolution of the real estate market and major renovations performed on the house are controlled. This paper focuses on the neighborhood of Laval, a suburb of Montreal, where a large noise barrier was built in 1990 along a highway. The data set contains transaction information on 134 houses that were sold at least twice from 1980–2000. The empirical result will show that the noise barrier induced a decrease of 6% in the house prices in our sample in the short run, while it had a stronger negative impact of 11% in the long run.

How and Why Different Forms of Expertise Moderate Anchor Precision in Price Decisions

2019 ◽  
Vol 66 (2) ◽  
pp. 165-175 ◽  
Author(s):  
Marie-Lena Frech ◽  
David D. Loschelder ◽  
Malte Friese
Keyword(s):  
Real Estate ◽  
Willingness To Pay ◽  
Mediation Analysis ◽  
Theoretical Understanding ◽  
Domain Specific ◽  
Psychological Mechanisms ◽  
Knowledge Based ◽  
Anchoring Effects ◽  
Real Estate Agents ◽  
The Impact

Abstract. Increasing price precision leads to linearly stronger anchoring effects for amateurs, but highly precise anchors can backfire for experts. Previous research focused on experts bargaining about an object within their expertise domain (e.g., real-estate agents negotiated about a house listed at €978,781.63). This leaves unknown whether too much precision backfires for experts because of their (a) general negotiation expertise, (b) domain-specific pricing knowledge, or (c) the combination of general expertise and price-knowledge. Our pre-registered report seeks to replicate the too-much-precision effect and to experimentally separate general negotiation expertise from domain-specific price-knowledge. Seasoned experts (real-estate agents) negotiate about an object either within (house) or outside (motor yacht) their domain of expertise. We measure experts’ willingness to pay (WTP), counteroffer, self-ascribed versus other-ascribed competence, and their self-ascribed versus other-ascribed price-knowledge. Based on responses of 400 professional real-estate agents, we replicate the advantageous anchor precision effect and illustrate that too much precision backfires regardless of whether agents negotiate within (house) or outside (yacht) their domain of expertise. Mediation analysis suggests that, consistent with previous research, the impact of precise anchors is due to the competence attributed to the negotiation opponent. Our results offer insights into the psychological mechanisms and theoretical understanding of anchor precision.

Real estate agent dynamism and licensing entry barriers

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel J. Ingram ◽  
Aaron Yelowitz
Keyword(s):  
Labor Market ◽  
Real Estate ◽  
Housing Prices ◽  
Occupational Licensing ◽  
Content Type ◽  
Percent Increase ◽  
The Usa ◽  
Real Estate Agents ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the labor market entry of real estate agents in the USA and the potential effect of occupational licensing on entry. Design/methodology/approach Data from the 2012 to 2017 American Community Survey are linked to local housing price fluctuations from the Federal Housing Finance Agency for 100 large metro areas. The cost of entry associated with occupational licensing for new real estate agents is carefully measured for each market and interacted with housing fluctuations to investigate the role for barriers to entry. Findings A 10 percent increase in housing prices is associated with a 4 percent increase in the number of agents. However, increased license stringency reduces the labor market response by 30 percent. The impact of licensing is stronger for women and younger workers. Originality/value This work contributes to the growing literature investigating the impact of occupational licensing on labor supply and entry in the USA, as well as potential impacts of regulation on dynamism and entrepreneurship. To the authors’ knowledge, this study is also the first to quantify the cost of occupational licensing in the real estate industry.

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