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Repeat Sales Methods for Growing Cities and Short Horizons

Author

Listed:
  • Karl L. Guntermann

    (Arizona State W.P. Carey School of Business)

  • Crocker Liu

    (Cornell University School of Hotel Administration)

  • Adam Nowak

    (West Virginia University College of Business and Economics)

Abstract

The accurate estimation of real estate indices is important for many purposes. A common method to estimate these indices is to use a repeat†sales procedure. Although this does not require property attributes, this method discards a large amount of sales. This paper proposes a method that can be used to incorporate a significant percentage of these discarded observations without requiring additional data collection by the researcher. We apply our method to the metropolitan statistical areas of Phoenix and Seattle and find that standard errors are on average two†thirds the value of standard errors from a repeat†sales procedure in Seattle and three†eighths the value in Phoenix.

Suggested Citation

  • Karl L. Guntermann & Crocker Liu & Adam Nowak, 2014. "Repeat Sales Methods for Growing Cities and Short Horizons," Working Papers 14-20, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:14-20
    as

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    File URL: http://busecon.wvu.edu/phd_economics/pdf/14-20.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Repeat sales index; spatial errors; hybrid methods; nuisance parameters;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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