Hedonic versus repeat-sales housing price indexes for measuring the recent boom-bust cycle

Dorsey, Robert E.; Hu, Hanjie; Mayer, Walter J.; Wang, Hui-chen

doi:10.1016/j.jhe.2010.04.001

Cited by 76 publications

(57 citation statements)

References 42 publications

(40 reference statements)

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“…These HPIs are monthly, repeat-sales indices, and are available for over 6,000 zip codes, covering roughly 60 percent of the national population. 14 Information on house prices at such a disaggregated level is of first-order importance for obtaining precise estimates of the relationship between house price appreciation and equity extraction given the considerable within-MSA heterogeneity in house price dynamics (Dorsey et al 2010;Ferreira and Gyourko 2012;Glaeser et al 2013).…”

Section: Methodsmentioning

confidence: 99%

Interest Rates and Equity Extraction During the Housing Boom

Bhutta

Keys

2016

American Economic Review

229

194

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Credit record panel data from 1999–2010 indicates that the likelihood of home equity extraction (borrowing, on average, about $40,000 against one's home) peaked in 2003 when mortgage rates reached historic lows. We estimate a 27 percent rise in extraction in response to a 100 basis point rate decline, and that house price growth amplifies this relationship. Differential responses to interest rates and home price appreciation by borrower age and credit score provide new evidence of financial frictions. Finally, equity extractions are associated with higher default risk, consistent with the use of borrowed funds for consumption or illiquid investment. (JEL D14, E43, E52, G12, R31)

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Section: Methodsmentioning

confidence: 99%

Interest Rates and Equity Extraction During the Housing Boom

Bhutta

Keys

2016

American Economic Review

229

194

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“…Quigley 1995;Englund et al 1998;Bin 2004;Smith 2006;guo et al 2007;gouriéroux, laferrère 2009;Hjalmarsson, E., Hjalmarsson R. 2009;Dorsey et al 2010;Pace et al 2000;Schulz, Werwatz 2011;Wu et al 2011). Hedonic modeling is, perhaps, the most widely used mass appraisal technique in estimating residential real estate market values (cf.…”

Section: Background On Real Estate Pricing Estimationmentioning

confidence: 99%

Using Multiple Criteria Decision Analysis (Mcda) to Assist in Estimating Residential Housing Values

Ferreira

Spahr

Sunderman

2016

International Journal of Strategic Property Management

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aBstraCt. Considerable literature exists regarding the complexity of the residential real estate appraisal process and the methods employed to determine initial listing prices as estimates of intrinsic market prices. Deviations in residential real estate intrinsic values occur due to a multiplicity of attributes and explanatory factors requiring consideration. We conduct a panel study using a Multiple Criteria Decision Analysis (MCDA) based framework that utilizes the skills and knowledge of a panel of residential real estate professionals (i.e. appraisers and realtors). We demonstrate how cognitive mapping and the Measuring Attractiveness by a Categorical Based Evaluation Technique (MACBETH) may assist in estimating appropriate offer/sale prices and strengthening current valuation approaches such as using comparables and/or hedonic modeling. The managerial implications of our MCDA-based framework and some avenues for future research are also presented.

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“…In addition, the different in characteristics between properties that were traded several times compared to a typical one can also contribute to the sample bias (Shimizu, Takatsuji and Nishimura, 2010). According to Dorsey et al (2010) and Palmquist (1982), another weakness of the repeat-sales method is that the method can only measure a constant quality of property and cannot measure the price changes over different time period. Due to these limitations, researchers such as Harrison, Smersh and Schwartz (2001) prefer to apply HPM to estimate the property values.…”

Section: Reviews Of Relevant Literaturesmentioning

confidence: 99%

Flood and Land Property Values

Ismail¹,

Karim²,

Basri³

2016

ASS

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Flood disaster has become a natural concern to the land owners where it raised a critical issue in term of land value depreciation. Previous studies have discussed the issue of potential decline in the value of land which are located on the flood-liable area. However, in Malaysia, current studies on flood impact are considered limited and do not focus on the effects of flood on land property. With the Hedonic Pricing Model (HPM) approach, we investigate the effect of flood on agricultural and industrial land property values in the urban and rural areas in Malaysia. The analysis indicates that the agricultural and industrial land values in the urban and rural areas have significantly decreased due to flood events. This study will benefit the land owners to understand the flood impact on land value and also the factors that contribute to the loss in the land value. It becomes the responsibility of the land owner to put the asset and property to its best use, given the presence of the flood. In addition, this study will help the policy maker to design and allocate land development efficiently in the urban or rural areas for agricultural and industrial project to ensure depreciation value of the land is minimized in the case of flood.

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Hedonic versus repeat-sales housing price indexes for measuring the recent boom-bust cycle

Cited by 76 publications

References 42 publications

Interest Rates and Equity Extraction During the Housing Boom

Interest Rates and Equity Extraction During the Housing Boom

Using Multiple Criteria Decision Analysis (Mcda) to Assist in Estimating Residential Housing Values

Flood and Land Property Values

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