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Information technology in the property market

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  • Lee, Yong Suk
  • Sasaki, Yuya

Abstract

Information technology is increasingly being utilized in the property market. This paper examines how sensitive house transaction prices are to online price estimates using data collected from Zillow. We find that online property price estimates strongly predict transaction prices even when observable and unobservable house and neighborhood characteristics are controlled for. In addition, we find evidence that suggests that online price estimates may have a direct impact on transaction prices.

Suggested Citation

  • Lee, Yong Suk & Sasaki, Yuya, 2018. "Information technology in the property market," Information Economics and Policy, Elsevier, vol. 44(C), pages 1-7.
    • Handle: RePEc:eee:iepoli:v:44:y:2018:i:c:p:1-7
    DOI: 10.1016/j.infoecopol.2018.07.002
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    References listed on IDEAS

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    Cited by:

    1. Janowski, Artur & Renigier-Biłozor, Małgorzata & Walacik, Marek & Chmielewska, Aneta, 2021. "Remote measurement of building usable floor area – Algorithms fusion," Land Use Policy, Elsevier, vol. 100(C).
    2. Aubry, Mathieu & Kräussl, Roman & Manso, Gustavo & Spaenjers, Christophe, 2019. "Machine learning, human experts, and the valuation of real assets," CFS Working Paper Series 635, Center for Financial Studies (CFS).

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    Keywords

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    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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