IDEAS home Printed from https://ideas.repec.org/a/sae/envirb/v40y2013i5p763-782.html
   My bibliography  Save this article

Exploring the Ripple Effect and Spatial Volatility in House Prices in England and Wales: Regressing Interaction Domain Cross-Correlations against Reactive Statistics

Author

Listed:
  • Crispin Cooper

    (Sustainable Places Research Institute, Cardiff University, 33 Park Place, Cardiff CF10 3BA, Wales)

  • Scott Orford
  • Chris Webster
  • Christopher B Jones

    (School of Computer Science and Informatics, Cardiff University, 5 The Parade, Roath, Cardiff CF24 3AA, Wales)

Abstract

In this study we conduct an exploratory spatiotemporal analysis of recent UK housing-market data 2000–06, fine grained both in space and in time. We present firstly the exploratory technique itself, and secondly an overview of patterns found in the dataset. A broadly scoped metamodel is created which points towards fruitful avenues for further investigation and understanding of the driving forces behind price propagation in the housing market. At the core of this model is an 8850 × 8850 cross-correlation matrix representing price linkage between different areas, which is analyzed by a custom regression engine. Hence this is the first study to unify both local and regional house-price modelling, and the first to look for a quantitative explanation of the structure of any house-price interaction matrix on a large scale. Findings corroborate existing research on the ripple effect and spatial volatility, and point towards mechanisms through which these might arise, as a combination of local interaction and market segmentation broken by lifecycle migration patterns.

Suggested Citation

  • Crispin Cooper & Scott Orford & Chris Webster & Christopher B Jones, 2013. "Exploring the Ripple Effect and Spatial Volatility in House Prices in England and Wales: Regressing Interaction Domain Cross-Correlations against Reactive Statistics," Environment and Planning B, , vol. 40(5), pages 763-782, October.
    • Handle: RePEc:sae:envirb:v:40:y:2013:i:5:p:763-782
    DOI: 10.1068/b37062
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/b37062
    Download Restriction: no
    File URL: https://libkey.io/10.1068/b37062?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Gray, 2012. "District House Price Movements in England and Wales 1997–2007: An Exploratory Spatial Data Analysis Approach," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1411-1434, May.
    2. McDonald, Ronald & Taylor, Mark P, 1993. "Regional House Prices in Britain: Long-Run Relationships and Short-Run Dynamics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(1), pages 43-55, February.
    3. Song Shi & Martin Young & Bob Hargreaves, 2009. "The ripple effect of local house price movements in New Zealand," Journal of Property Research, Taylor & Francis Journals, vol. 26(1), pages 1-24, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Renaud Le Goix & Timothée Giraud & Robin Cura & Thibault Le Corre & Julien Migozzi, 2019. "Who sells to whom in the suburbs? Home price inflation and the dynamics of sellers and buyers in the metropolitan region of Paris, 1996-2012 [Qui vend à qui dans le périurbain ? L'inflation des pri," Post-Print halshs-01968663, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Gray, 2018. "An application of two non-parametric techniques to the prices of British dwellings: An examination of cyclicality," Urban Studies, Urban Studies Journal Limited, vol. 55(10), pages 2286-2299, August.
    2. David Gray, 2015. "Hidden Properties of Irish House Price Vintages," Housing Studies, Taylor & Francis Journals, vol. 30(8), pages 1317-1353, November.
    3. Ling Zhang & He Wang & Yan Song & Haizhen Wen, 2019. "Spatial Spillover of House Prices: An Empirical Study of the Yangtze Delta Urban Agglomeration in China," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    4. Wonseok Seo & LeeYoung Kim, 2020. "Investigating the Ripple Effect through the Relationship between Housing Markets and Residential Migration in Seoul, South Korea," Sustainability, MDPI, vol. 12(3), pages 1-22, February.
    5. Bin Chi & Adam Dennett & Thomas Oléron-Evans & Robin Morphet, 2021. "Shedding new light on residential property price variation in England: A multi-scale exploration," Environment and Planning B, , vol. 48(7), pages 1895-1911, September.
    6. Jin Hu & Xuelei Xiong & Yuanyuan Cai & Feng Yuan, 2020. "The Ripple Effect and Spatiotemporal Dynamics of Intra-Urban Housing Prices at the Submarket Level in Shanghai, China," Sustainability, MDPI, vol. 12(12), pages 1-17, June.
    7. Dominik Blatt & Kausik Chaudhuri & Hans Manner, 2021. "Spillover in the UK Housing Market," Graz Economics Papers 2021-13, University of Graz, Department of Economics.
    8. Hooi Hooi Lean & Russell Smyth, 2013. "Regional House Prices and the Ripple Effect in Malaysia," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 895-922, April.
    9. Cheng-Wen Lee & Shu-Hen Chiang & Zhong-Qin Wen, 2023. "Pursuing the Sustainability of Real Estate Market: The Case of Chinese Land Resources Diversification," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    10. Chen, Pei-Fen & Chien, Mei-Se & Lee, Chien-Chiang, 2011. "Dynamic modeling of regional house price diffusion in Taiwan," Journal of Housing Economics, Elsevier, vol. 20(4), pages 315-332.
    11. Tsai, I-Chun & Chiang, Shu-Hen, 2019. "Exuberance and spillovers in housing markets: Evidence from first- and second-tier cities in China," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 75-86.
    12. Mark J. Holmes & Arthur Grimes, 2005. "Is there long-run convergence of regional house prices in the UK?," Working Papers 05_11, Motu Economic and Public Policy Research.
    13. Giorgio Canarella & Stephen M. Miller & Stephen K. Pollard, 2010. "Unit Roots and Structural Change: An Application to US House-Price Indices," Working papers 2010-04, University of Connecticut, Department of Economics, revised Dec 2010.
    14. Dayong Zhang & Qiang Ji & Wan-Li Zhao & Nicholas J Horsewood, 2021. "Regional housing price dependency in the UK: A dynamic network approach," Urban Studies, Urban Studies Journal Limited, vol. 58(5), pages 1014-1031, April.
    15. Mei-Se Chien, 2013. "The Non-linear Ripple Effect of Housing Prices in Taiwan: A Smooth Transition Regressive Model," ERES eres2013_51, European Real Estate Society (ERES).
    16. Montagnoli, Alberto & Nagayasu, Jun, 2015. "UK house price convergence clubs and spillovers," Journal of Housing Economics, Elsevier, vol. 30(C), pages 50-58.
    17. Cynthia Fan Yang, 2021. "Common factors and spatial dependence: an application to US house prices," Econometric Reviews, Taylor & Francis Journals, vol. 40(1), pages 14-50, January.
    18. Gavin Cameron & John Muellbauer & Anthony Murphy, 2005. "Booms, Busts and Ripples in British Regional Housing Markets," Macroeconomics 0512003, University Library of Munich, Germany.
    19. Montañés, Antonio & Olmos, Lorena & Reyes, Marcelo, 2016. "Does crisis affect convergence process? The case of the Spanish provinces," MPRA Paper 69543, University Library of Munich, Germany.
    20. Taufiq Choudhry, 2020. "Economic Policy Uncertainty and House Prices: Evidence from Geographical Regions of England and Wales," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(2), pages 504-529, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirb:v:40:y:2013:i:5:p:763-782. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.