Journal Article10.1111/1540-6229.00554
On Choosing Among House Price Index Methodologies
295
TL;DR: In this paper, the authors compared three models with several sets of property transaction data and found that the commonly used hedonic price model suffers from potential specification bias and inefficiency, while the weighted repeat-sales model presents potentially more serious bias problems.
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Abstract: This paper compares housing price indices estimated using three models with several sets of property transaction data The commonly used hedonic price model suffers from potential specification bias and inefficiency, while the weighted repeat-sales model presents potentially more serious bias and inefficiency problems A hybrid model combining hedonic and repeat-sales equations avoids most of these sources of bias and inefficiency This paper evaluates the performance of each type of model using a particularly rich local housing market database The results, though ambiguous, appear to confirm the problems with the repeat sales model but suggest that systematic differences between repeat-transacting and single-transacting properties lead to bias in the hedonic and hybrid models as well
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Citations
Owner‐occupied housing costs and the consumer price index
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TL;DR: In this article, the authors examined the theoretically correct user cost as an alternative to the current method, but rejected due to measurement problems and concluded that the rental equivalence method is both theoretically sound and administratively feasible.
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Real Estate Price Indices and Price Dynamics: An Overview from an Investments Perspective
TL;DR: A review of the state of the art in real estate price indexing and related to that, the current state-of-the-art of real estate pricing can be found in this article.
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Hedonic-Based Price Indexes for the Housing Market in Italian Cities: Theory and Estimation
Alessandra Michelangeli,Alberto Zanardi +1 more
- 01 Jan 2009
TL;DR: In this article, the authors adopt the hedonic approach to develop a price index for the housing market in Italy, which allows to separate the price variations due to qualitative changes of housing attributes from pure price changes, that is the intrinsic real estate price variations.
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•Posted Content
Spanish housing markets during the first phase of the rural-urban transition process
TL;DR: In this paper, a new hedonic index of real housing prices and a cross-regional panel dataset of price fundamentals were constructed to evaluate the performance of Spanish housing markets during the first phase of the rural-urban transition process.
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The Efficiency of the Market for Single-Family Homes
TL;DR: In this article, weak-form efficiency of the market for single family homes is evaluated using data on repeat sales prices of 39,210 individual homes, each for two sales dates.
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The Efficiency of the Market for Single-Family Homes
Karl E. Case,Robert J. Shiller +1 more
TL;DR: In this paper, the efficiency of single family home prices is evaluated using repeat sales prices of 39,210 individual homes in Atlanta, Chicago, Dallas, and San Francisco/Oakland for 1970-86.
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A Regression Method for Real Estate Price Index Construction
TL;DR: In this paper, the problem of combining price relatives of repeat sales of properties to obtain a price index can be converted into a regression problem, and standard techniques of regression analysis can be used to estimate the index.
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Prices of Single Family Homes Since 1970: New Indexes for Four Cities
TL;DR: In this paper, the authors used data on nearly a million homes sold in four metropolitan areas (Atlanta, Chicago, Dallas and San Francisco) to construct quarterly indexes of existing home prices between 1970 and 1986.