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Real Estate Market Efficiency: A Survey of Literature

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  • Gunther Maier

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  • Shanaka Herath

    ()

Abstract

In this paper, we discuss the question whether or not the real estate market is efficient. We define market efficiency and the efficient market hypothesis as it had been developed in the literature on financial markets. Then, we discuss the empirical evidence that exists concerning the efficiency or inefficiency of financial markets, usually seen as the reference markets as far as market efficiency is concerned. In a separate section, we turn to the real estate market. There, we define the real estate market and discuss various aspects that are decisive for the efficiency of that market. As it turns out, the result found in the literature is inconclusive. Majority of studies provide evidence supporting inefficiency of the real estate market while several studies maintain the notion of real estate market efficiency.

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Bibliographic Info

Paper provided by Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business in its series SRE-Disc with number sre-disc-2009_07.

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Length: 50 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:wiw:wiwsre:sre-disc-2009_07

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References

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Citations

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Cited by:
  1. Felix Schindler, 2013. "Predictability and Persistence of the Price Movements of the S&P/Case-Shiller House Price Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 46(1), pages 44-90, January.
  2. Luis A. Gil-Alana & Goodness C. Aye & Rangan Gupta, 2012. "Testing for Persistence with Breaks and Outliers in South African House Prices," Faculty Working Papers 20/12, School of Economics and Business Administration, University of Navarra.
  3. Roberto Dieci & Frank Westerhoff, 2012. "A simple model of a speculative housing market," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 303-329, April.
  4. Gunther Maier, 2011. "Immobilienbewertung - theoretische Konzepte und praktische Anwendungen," SRE-Disc sre-disc-2011_03, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
  5. Felix Schindler, 2014. "Persistence and Predictability in UK House Price Movements," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 132-163, January.

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