Repeat sales house price indices: comparative properties under alternative data generation processes

Grimes, Arthur; Sorensen, Kade; Young, Chris

doi:10.1080/00779954.2019.1612937

Cited by 5 publications

(5 citation statements)

References 24 publications

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“…In other words, the quality-change issue is not adjusted in the WRS index. Grimes et al (2019) further demonstrated that the WRS index does not necessarily outperform the BMN one. Dorsey et al (2010) contended that the assumption of constant quality in the repeat sales method causes the index to over-estimate during housing booms and busts.…”

Section: Literature Reviewmentioning

confidence: 94%

A housing price index with the improvement-value adjusted repeated sales (IVARS) method

Yiu

Cheung

2021

IJHMA

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Purpose The repeat sales house price index (HPI) has been widely used to measure house price movements on the assumption that the quality of properties does not change over time. This study aims to develop a novel improvement-value adjusted repeat sales (IVARS) HPI to remedy the bias owing to the constant-quality assumption. Design/methodology/approach This study compares the performance of the IVARS model with the traditional hedonic price model and the repeat sales model by using half a million repeated sales pairs of housing transactions in the Auckland Region of New Zealand, and by a simulation approach. Findings The results demonstrate that using the information on improvement values from mass appraisal can significantly mitigate the time-varying attribute bias. Simulation analysis further reveals that if the improvement work done is not considered, the repeat sales HPI may be overestimated by 2.7% per annum. The more quality enhancement a property has, the more likely it is that the property will be resold. Practical implications This novel index may have the potential to enable the inclusion of home condition reporting in property value assessments prior to listing open market sales. Originality/value The novel IVARS index can help gauge house price movements with housing quality changes.

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Section: Literature Reviewmentioning

confidence: 94%

A housing price index with the improvement-value adjusted repeated sales (IVARS) method

Yiu

Cheung

2021

IJHMA

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“…Quality-adjusted Hedonic regression [109][110][111][112][113][114] Explicit time variable Strictly cross-sectional Repeat-sales [98,[114][115][116] Original repeat-sales Weighted repeat-sales Hybrid [117][118][119][120] Case and Quigley's Quigley Hill, Knight and Sirman Englund, Quigley and Redfearn Non-quality-adjusted Average [58] M e a n Median…”

Section: Methods Modelmentioning

confidence: 99%

Predicting Carpark Prices Indices in Hong Kong Using AutoML

Li¹,

Song²,

Li³

et al. 2023

Computer Modeling in Engineering &Amp; Sciences

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The aims of this study were threefold: 1) study the research gap in carpark and price index via big data and natural language processing, 2) examine the research gap of carpark indices, and 3) construct carpark price indices via repeat sales methods and predict carpark indices via the AutoML. By researching the keyword "carpark" in Google Scholar, the largest electronic academic database that covers Web of Science and Scopus indexed articles, this study obtained 999 articles and book chapters from 1910 to 2019. It confirmed that most carpark research threw light on multi-storey carparks, management and ventilation systems, and reinforced concrete carparks. The most common research method was case studies. Regarding price index research, many previous studies focused on consumer, stock, press and futures, with many keywords being related to finance and economics. These indicated that there is no research predicting carpark price indices based on an AutoML approach. This study constructed repeat sales indices for 18 districts in Hong Kong by using 34,562 carpark transaction records from December 2009 to June 2019. Wanchai's carpark price was about four times that of Yuen Long's carpark price, indicating the considerable carpark price differences in Hong Kong. This research evidenced the features that affected the carpark price indices models most: gold price ranked the first in all 19 models; oil price or Link stock price ranked second depending on the district, and carpark affordability ranked third.

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“…A study was done in 2021 to compare the three main repeat sales methods in New Zealand by using a dataset from CoreLogic NZ (Grimes et al, 2021). The study compared the original repeat sales method by Bailey (BMN), the Case and Shiller method (CS), and the Gao and Wang (2007) unbalanced panel approach (UP).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The pair transactions dataset was split into a training set of 80% and test set of 20% and stratified by the final sale year to allow for balanced coverage over the years between the training and test sets. The OLS model was fitted (Grimes et al, 2021) using the training set. Using the test set, the model can predict b y; the log of the ratio between the final price and the initial price as follows:…”

Section: Performance Metricsmentioning

confidence: 99%

Tracking Residential Real Estate Capital Growth In NSW by Constructing A Price Index from Sales Transactions

Nashed,

Baron

2023

JDSIS

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The main objective of this paper is to investigate residential real estate capital growth in the state of NSW (Australia). Tracking capital growth has been instrumental for tracing price variations & value growth of residential real estate. More specifically, residential real estate past sales transactions can be utilized to track capital growth using repeat sales approach. Ordinary least squared method was used to fit a linear model and construct a price index. The results were used to establish a yearly and quarterly price index for the whole state as well as for each respective district. The research shows that while using a mean price as a measure for tracking growth can produce misleading results, the capital growth-tracking can be carried out more accurately by the means of investigating repeat sales. Furthermore, the research reveals trends in the property market as well as areas with the highest and lowest growth. The results produced can help investors, banks, and government organizations to compare capital growth across different districts at different times and drive lending, investment, or development decisions.

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Repeat sales house price indices: comparative properties under alternative data generation processes

Cited by 5 publications

References 24 publications

A housing price index with the improvement-value adjusted repeated sales (IVARS) method

A housing price index with the improvement-value adjusted repeated sales (IVARS) method

Predicting Carpark Prices Indices in Hong Kong Using AutoML

Tracking Residential Real Estate Capital Growth In NSW by Constructing A Price Index from Sales Transactions

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