Testing the Dividend Discount Model in Housing Markets: the Role of Risk

Bao, Ge; Feng, Guoliang

doi:10.1007/s11146-017-9626-z

Cited by 5 publications

(2 citation statements)

References 30 publications

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“…However, housing is mainly a consumption decision, not an investment decision. A resurgence of recent literature addresses the need to incorporate imputed income return into housing analysis (e.g., Bao & Feng, 2018;Brounen et al, 2014;Eichholtz et al, 2021;Jorda et al, 2019;Lin, 2022). Altogether, this research suggests a greater role of local factors in explaining the income returns of housing markets.…”

Section: Discussionmentioning

confidence: 78%

Assessment of Investor Sentiment towards Real Estate Stock in the Nigerian Capital Market

Ajayi¹,

Fateye²

2022

28th Annual European Real Estate Society Conference

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This research examines whether most variation in house price changes is mainly driven by local or national factors. Employing a novel data containing both capital appreciation and income component in the U.S. Metropolitan Statistical Areas, results show that macroeconomic factors, absorbed by time fixed effects, account for 43% of the variation in capital gains and 2% of the variation in rental yields. Overall, the findings empirically support the prior literature assuming that the nature of housing markets is mainly local. The findings suggest a greater role of local factors for understanding cross-sectional income returns in housing markets.

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Section: Discussionmentioning

confidence: 78%

Assessment of Investor Sentiment towards Real Estate Stock in the Nigerian Capital Market

Ajayi¹,

Fateye²

2022

28th Annual European Real Estate Society Conference

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“…In many previous studies (see, for instance, Renaud et al, 1997;Case-Shiller, 1989;Gallin, 2006 and2008;Kallberg et al, 2003;Hwang et al, 2006;Hamilton-Schwab, 1985;Phillips, 1988;Capozza-Seguin, 1996;Meese-Wallace, 1994;Baol-Feng, 2018), it has been assumed that asset markets, including the housing market, operate efficiently. Under this assumption, the intrinsic value of a house is calculated as the present value of the rental flows discounted by the effective interest rate (interest rate adjusted for the rental increase rate).…”

Section: Theoretical Model and Implications For The Housing Marketmentioning

confidence: 99%

The Role of Speculative Demand in Housing Price Changes in Turkey

Siklar

2024

BER

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Housing accounts for the largest portion of households' total assets in Turkey. It is an economic sector that requires careful analysis, especially considering the government's housing sector support policies and the significant price increases in recent years. This study utilizes the theoretical model developed within the Efficient Markets Hypothesis framework and the SVAR methodology to estimate house price changes. These changes are then decomposed into structural shocks, including supply, residential demand, and speculative demand shocks. The empirical results highlight the significant role of speculative demand in driving house price changes, with house price expectations being the main factor influencing speculative demand shocks. The behavior of the banking sector and interest rates also play a significant role in this process. Consequently, policies to stabilize house prices should consider these factors and not solely focus on credit regulations when consumer expectations are the driving force behind house price changes.

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Bubbling Away: Forecasting Real Estate Prices, Rents, and Bubbles in a Transition Economy

Becker

Cheng

2020

Comp Econ Stud

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Testing the Dividend Discount Model in Housing Markets: the Role of Risk

Cited by 5 publications

References 30 publications

Assessment of Investor Sentiment towards Real Estate Stock in the Nigerian Capital Market

Assessment of Investor Sentiment towards Real Estate Stock in the Nigerian Capital Market

The Role of Speculative Demand in Housing Price Changes in Turkey

Bubbling Away: Forecasting Real Estate Prices, Rents, and Bubbles in a Transition Economy

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