House Prices, Non-Fundamental Components and Interstate Spillovers: The Australian Experience

Interest Rates, Local Housing Markets and House Price Over‐reactions

“…During this period, Perth overtakes Sydney as the least affordable of the major capital cities in Australia. Over the past ten years, affordability levels appear to be related to business cycle conditions, particularly for Melbourne and Sydney (see Costello et al ., ). The latter two cities have exhibited a significant decline in affordability levels in the last few years, in contrast to the remaining cities.…”

The effect of mortgage interest deduction and mortgage characteristics on house prices

“…Gallin (2006) adopts a bootstrap approach that allows for cross-sectional dependence and shows that none of the tests rejects the null hypothesis of no cointegration in the USA. Using Australian data, Costello et al (2011) provide evidence of "sustained deviations of house prices from values warranted by income" and Ambrose et al (2013) find evidence that the correction of deviations from fundamentals can take decades using a unique data set for houses in Amsterdam from 1650 through 2005. Holly et al (2010) are able to reject the null hypothesis of no cointegration between A C C E P T E D M A N U S C R I P T house prices and income in the USA using the CIPS panel unit root test described in Pesaran (2007).…”

Price determinants of Aboriginal art, and its role as an alternative asset class

“…Many studies use the technique to price assets as varied as wine, vintage cars, and -most commonly -real estate (Costello, Fraser and Groenewold, 2011). Hedonic studies of artworks regress the sale price of each work against the artist (name, age, whether dead or alive), features of the artwork (size, medium) and details of the sale (auction house, seasonality, year).…”