Residential Property Price Indices on Small Property Markets

Abstract

There are many reasons for the fact that reliable property indices are difficult to calculate. Even though, in theory, there are several acknowledged methods of their determination, this task poses problems of various nature in practice. These problems grow when the data sets are limited, which is the case on small property markets where the number of transactions are low. The paper is an attempt to compute property price indices on the basis of a statistically smoothed series of average unit prices of residential properties sold on a small market, exemplified by the county of Łobez. Additionally, the paper discusses the problems that have emerged over the course of the study, as well as the obtained results, as viewed in the context of the general situation on the property market.

Identification of Regularities in Relation Between Prices on Primary and Secondary Housing Market in Selected Cities in Poland

“…Therefore, it is proposed to apply numerical methods to such series, e.g. their mechanical smoothing (Kokot, 2016;Kokot, 2017). In addition to the availability and quality of data, comparability is also an issue, as the real estate market, and in particular the residential segment, is always local in nature (Łaszek & Widłak, 2008).…”