Uses of Residential Property Price Indices

Fenwick, David

doi:10.1787/9789264197183-4-en

Cited by 9 publications

(8 citation statements)

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“…This setting relaxes the assumption of similar valuation of a given characteristic across different regions (Fenwick, 2013) and diminishes the need to control for location (Rosen, 1984, Webb & Fisher, 1996, and Gunnelin & Söderberg, 2003. The model takes the following form:…”

Section: Identification Strategymentioning

confidence: 99%

“…Nonetheless, stratification can become intractable and subjective as several characteristics can be considered (e.g. Fenwick, 2013 andFipezap, 2014 The paper is structured as follows: section 2 describes the methodologies and variables used to compute the median-price and hedonic-based indices, section 3 reports the results and compares the estimates, and section 4 concludes.…”

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confidence: 99%

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Property Mix Heterogeneity and Market Cycles: How Much Can We Rely on Median-Price Indices?

Costa

Cazassa

2017

JFI

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Objective. Understand in which types of location median-price indices could provide reasonable estimates of rent growth. As far as our research allows, the market-based measures developed throughout this study are the first to emphasize office properties in Brazil using an hedonic framework. Methodology. Create appraisal-based indices of rent growth using median-price and hedonicbased techniques for two regions with different degrees of property mix heterogeneity and compare their behavior overtime. Findings. Volatility in median-price measures is larger than hedonic-based measures in market peaks and troughs due to different weighting of high and low-tier properties overtime. This result is stronger in the location with higher property mix heterogeneity and, consequently, exacerbates market cycles in this region. Limitations. We do not find statistically significant differences between the measures considered. Nevertheless, we do not consider whether this similarity would hold when using transactional-based data. Originality/Value. Our results suggest that researchers, policy makers and investors need to take into account the "undesired fluctuation" of median-price measures when interpreting such indices.

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Section: Identification Strategymentioning

confidence: 99%

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confidence: 99%

Property Mix Heterogeneity and Market Cycles: How Much Can We Rely on Median-Price Indices?

Costa

Cazassa

2017

JFI

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“…The index of price change for an individual segment can be aggregated with other segments, say by location and then by type to form a national index. The weights might be stock or transaction-value weights depending on purpose, Fenwick (2013). An advantage of the hedonic imputation quasi-superlative formulation is that for each transaction in period t there is a repeat valuation in period 0.…”

Section: Segmentation and Periodic Updating Of Weightsmentioning

confidence: 99%

How to Better Measure Hedonic Residential Property Price Indexes

Silver

2016

IMF Working Papers

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“…House prices are regarded as an indicator of economic growth, although there is a debate of whether they lead, lag or are just coincident (Fenwick, 2013). Increasing house prices and mortgage costs impact on the wider economy as falling levels of disposable income can curtail economic expansion or recovery.…”

Section: Introductionmentioning

confidence: 99%

The role of house price indices in managing the integration of finance and housing markets in the European Union

Grover

2014

Journal of European Real Estate Research

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Purpose – The article aims to examine why residential property price indices (RPPI) are important, particularly in the European Union (EU) with its highly integrated financial system and examines the problems in developing a pan-European price index that aggregates the indices of different countries. Design/methodology/approach – The reasons why RPPI are important is explored through a review of the literature on residential price bubbles and the issues with the indices through studies of individual examples. Findings – Financial integration in the EU has taken place without adequate consideration having been given to diversity in residential property markets. The development of means of monitoring them has lagged behind integration with the national price indices using a variety of methods and approaches to data that limit the extent to which they can be aggregated. Originality/value – The article shows the need for better quality data about house price trends in Europe if the consequences of future bubbles are to be avoided. Current initiatives are unlikely to satisfy this, as they leave too many choices about methodology and data in the hands of individual countries.

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Uses of Residential Property Price Indices

Cited by 9 publications

References 0 publications

Property Mix Heterogeneity and Market Cycles: How Much Can We Rely on Median-Price Indices?

Property Mix Heterogeneity and Market Cycles: How Much Can We Rely on Median-Price Indices?

How to Better Measure Hedonic Residential Property Price Indexes

The role of house price indices in managing the integration of finance and housing markets in the European Union

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