Abstract Accurate estimation of price indices for residential property is an essential feature real estate research, especially in view recent efforts to forecast trends the 1990s. In this article, are estimated by using sales price, assessed value and date sale every transaction between independent parties. This (AV) methodology compared repeat (RS) method. article develops a simple method correcting effect measurement errors associated with value. We demonstrate that large samples...

The set of real properties sold during a given period time may be subdivided into several subsets comprising those that only once, twice, and three or more times. major reason for subdividing the sample is to allow estimation residential price indices by repeat‐sales methodology. purpose this paper compare estimated with repeat subsample based on entire sample. Our data five metropolitan areas indicate cumulative trends subsamples can differ from full samples over periods ranging two ten...

We examine characteristics of housing price dynamics that may be consistent with rational learning and not simply irrational feedback trading. find significant patterns temporal spatial diffusion are more amenable to explanations allow for components. First, we execute our tests on changes, but town‐by‐town differentials from regional average changes. Second, relationships own neighboring town differentials, control groups non‐neighboring towns. Third, population density, a proxy scale...

Spatial autoregressive hedonic models utilize house prices lagged in space and time to produce local price indices, for example, the spatial temporal (STAR) model might be used this way. This paper complements these with a semiparametric approach, Local Regression Model (LRM). The greater flexibility of LRM may allow it identify space–time asymmetries missed by other models. is fitted 49,511 sales from 1972Q1 1991Q2 Fairfax County, Virginia. indices display plausible significant variations...

This article extends unobserved heterogeneity to the multinomial logit (MNL) model framework in context of mortgages terminated by refinance, move or default. It tests for importance when borrower characteristics such as income, age and credit score are included capture lender‐observed heterogeneity. does this comparing proportional hazard MNL with without mass‐point estimates heterogeneous groups borrowers. The mixed (MMH) yields larger more significant coefficients several important...

We model competing risks of mortgage termination where the borrower faces a repeated choice to continue pay, refinance loan, move or default. Most previous empirical work on prepayment has ignored distinction between prepayments triggered by refinancing and moving, combining them into single rate. show that financial considerations are primary drivers while homeowner characteristics have more influence decision. demonstrate these differences statistically significant two distinct choices...

This article is motivated by the limited ability of standard hedonic price equations to deal with spatial variation in house prices. Spatial patterns prices can be viewed as sum many causal factors: Access central business district associated a gradient; access decentralized employment subcenters causes more localized changes prices; addition, neighborhood amenities (and disamenities) cause change rapidly over relatively short distances. prediction (e.g., for an automated valuation system)...

Price indexes based on the repeat‐sales model are revised all way to beginning of sample every time a new quarter information becomes available. Revisions can adversely affect practitioners. In this paper we examine revision process both theoretically and empirically. The theory behind method says that revisions should lower standard error estimated indexes; prove that, in fact, index is more efficient than original one. This implies large samples make trivial. However, our data,...

Journal Article Schools and Housing Markets: An Examination of School Segregation Performance in Connecticut Get access John M. Clapp, Clapp University Search for other works by this author on: Oxford Academic Google Scholar Stephen L. Ross The Economic Journal, Volume 114, Issue 499, November 2004, Pages F425–F440, https://doi.org/10.1111/j.1468-0297.2004.00253.x Published: 18 October 2004

In the hedonic model, implicit market prices can be interpreted as present values of rents per unit each characteristic. But when rise, there may substantial value associated with option to redevelop higher intensity land value. presence value, we first demonstrate that linear regressions should include an additive nonnegative term for option. This increases in variance underlying stochastic process. If this is omitted, then estimates desirable (undesirable) characteristics will biased...