Repeat Assessed Values Model for Housing Price Index

Open access

Abstract

This study proposes an innovative methodology, named Repeat Appraised Price Model (RAV), useful for determining the price index numbers for real estate markets and the corresponding index numbers of hedonic prices of main real estate characteristics in the case of a lack of data. The methodological approach proposed in this paper aims to appraise the time series of price index numbers. It integrates the principles of the method of repeat sales with the peculiarities of the Hedonic Price Method, overcoming the problem of an almost total absence of repeat sales for the same property in a given time range; on the other hand, the technique aims to overcome the limitation of the repeat sales technique concerning the inability to take into account the characteristics of individual properties.

Abraham J.M. Schauman W., 1991, New Evidence on House Prices from Fannie Mac Repeat Sales, AREUEA Journal, No. 19.

Bayley, M.J., Muth, R.F., Nourse H.O., 1963, A Regression Model for Real Estate Price Index Construction, Journal of American Statistical Association, No. 58, pp. 933-942.

Blundell, G., Ward, C., 1987, Property Portfolio Allocation: a Multi-Factor Model, Land Development Studies, Vol. 4, pp. 145-56.

Bourassa, S.C., Hoesli M., Sun J., 2006, A Simple Alternative House Price Index Method, Journal of Housing Economics, 15, 80-97.

Case B., Quigley J., 1991, The Dynamics of Real Estate Prices, Review of Economics and Statistics, No. 73.

Case K. E., Shiller R. J., 1987, Prices of Single-Family Homes Since 1970: New Indexes for Four Cities, New England Economics Review, 45-56.

Case K. E., Shiller R. J., 1989, The Efficiency of the Market for Single Family Homes, American Economics Review, 79, 125-137.

Ciuna M., Salvo F., D’Amato M, 2013, The Appraisal Smoothing in the Real Estate Indeces, in Dynamics of Land Values and Agricultural Policies, MediaMond International Proceedings, Bologna, 63-71.

Ciuna M., De Ruggiero, M. Salvo, F., 2014, Property Prices Index Numbers and Derived Indices, Property Management, Vol. 32 (2), pp. 139-153.

Clapp J. M., Giaccotto C., 1992, Estimating Price Trends for Residential Property: A Comparison of Repeat Sale and Assessed Value Methods, Journal of the American Statistical Association, Vol. 87, issue 418, pp. 300-306

Ciuna M., Salvo F., 2008, Numeri indici dei prezzi immobiliari, Estimo e Territorio, No. 12, pp. 30-47.

Dombrow J., Knight J.R., Sirmans C.F., 1997, Aggregation Bias in Repeat-Sales Indices, Journal of Real Estate Finance and Economics, No. 14.

Dombrow J., Knight J., Sirmans, C.F., 1997, Aggregation Bias in Repeat-Sales Indices, The Journal of Real Estate Finance and Economics, Vol. 14, issue 1-2, pages 75-88

Dreiman M. H., Pennington-Cross, A., 2004, Alternative Methods of Increasing the precision of Weighted Repeated Sales House Price Indices, Journal of Real Estate Finance and Economics, No. 28(4).

Englund P., Quigley J.M., Redfearn C., 1998, Improved Price Indexes for Real Estate: Measuring the Course of Swedish Housing Prices, Journal of Urban Economics, 44, 171-196.

FREUD, R.J. and WILSON W.J., 1997, Metodi Statistici. Padova, Italy.

Geltner, D., 1989, Estimating Real Estate’s Systematic Risk from Aggregate Level Appraisal-Based Returns, Journal of the American Real Estate and Urban Economics Association, Vol. 17, pp. 463-81.

Geltner, D., 1991, Smoothing in Appraisal-Based Returns, Journal of Real Estate Finance and Economics, Vol. 4, pp. 327-45.

Geltner, D., 1993a, Temporal Aggregation in Real Estate Return Indices, Journal of the American Real Estate and Urban Economics Association, Vol. 21, pp. 141-66.

Geltner, D., Pollakowski H., 2007, A Set of Indexes for Trading Commercial Real Estate Based on the Real Capital Analytics Transaction Prices Database, MIT Center for Real Estate.

Goetzmann W.N., Spiegel, M., 1997, A Spatial Model of Housing Reurns and Neighborhoods Substitutability, Journal of Real Estate Finance and Economics 14, 11-31.

Hill R., Carter, Knight J. R., Sirmans C.F., 1997, Estimating Capital Asset Prices, Review of Economics and Statistics 79, 226-233.

Howells P.G.A., Bain, K., 1990, Financial Markets and Institutions. London: Longman.

Kluger, B. D., Stephan, J., 1997, Alternative Liquidity Measures and Stock Returns, Review of Quantitative Finance and Accounting 8(1), 19–36.

Matysiak G., Wang P., 1995, Commercial Property Market Prices and Valuations: Analysing the Correspondence, Journal of Property Research 12:181.

Nagaraja C. H., Brown L. D., Zhao L. H., 2011, An Autoregressive Approach to House Price Modeling, The Annals of Applied Statistics 5.1, pp. 124-149.

Pace R. K., 1997, Performing Large Scale Spatial Autoregressions, Economics Letters 54, 283-291.

Pace, R. K., Berry R., Clapp J., Rodriguez M., 1998, Spatiotemporal Autoregressive Models of Neighborhood Effects, Journal of Real Estate Finance and Economics 17:1, 15-33.

Quan D.C., Quigley J.M., 1991, Price Formation and the Appraisal Function in Real Estate Markets, Journal of Real Estate Finance and Economics, Vol. 4, pp. 127-46.

Quan D.C. and Quigley J.M., 1989, Inferring an Investment Return series for Real Estate from Bbservations on Sales, Journal of the American Real Estate and Urban Economics Association, Vol. 17, pp. 218-30

Quigley J. M., 1995, A Simple Hybrid Model for Estimating Real Estate Price Indexes, Journal of Housing Economics, Vol. 4, No. 1, pp. 1-12.

Salvo F., 2008, Principi metodologici per la costruzione di indici dei prezzi nel mercato immobiliare, In Del Giudice, V., D'Amato, editor, L'elaborazione dell'informazione immobiliare: segmentazione immobiliare del mercato e indici dei prezzi immobiliari, Maggioli, Rimini, pp. 114-133.

Salvo F., Ciuna M., D’Amato M., 2013, Appraising Building Area’s Index Numbers Using Repeat Value Model. A Case study in Paternò (CT), in Dynamics of Land Values and Agricultural Policies, MediaMond International Proceedings, Bologna, 63-71.

Shiller R.J., 1991, Arithmetic Repeat Sales Price Estimators, Journal of Housing Economics, No. 1.

Shiller R.J., 1993, Measuring Asset Values for Cash Settlement in Derivative Markets: Hedonic Repeated Measures Indices and Perpetual Futures, Journal of Finance, No. 48 (3).

Simonotti M., 2006, Metodi di stima immobiliare, Dario Flaccovio Editore, Palermo

Real Estate Management and Valuation

The Journal of Towarzystwo Naukowe Nieruchomosci

Journal Information

CiteScore 2017: 0.19

SCImago Journal Rank (SJR) 2017: 0.140
Source Normalized Impact per Paper (SNIP) 2017: 0.363

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 174 174 22
PDF Downloads 74 74 12