IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v18y2009i3p214-223.html
   My bibliography  Save this article

A house price index based on the SPAR method

Author

Listed:
  • de Vries, Paul
  • de Haan, Jan
  • van der Wal, Erna
  • Mariën, Gust

Abstract

Within the European Union there has been a push to provide European governments and the European Central Bank with the statistics they need for monitoring the owner-occupied sector. This paper reports on the results of a project to develop a house price index for the Netherlands. From January 2008, Kadaster, the Dutch land registry office, and Statistics Netherlands began jointly publishing house price index numbers for the whole country and for some specific dwelling types and regions. A number of special institutional features of the situation in the Netherlands contributed to the choice of index construction method. The indexes are computed using the Sale Price Appraisal Ratio (SPAR) method, which utilizes the ratios of transaction prices and previous appraisal values. We describe the SPAR method, compare it with repeat sales methods and assess the reliability of the official Dutch appraisal values. Empirical results for January 1995-March 2009 are presented. The SPAR method performs well compared to repeat sales, and the results reported will be of interest to other countries that have, or could instigate, institutional arrangements similar to those in the Netherlands.

Suggested Citation

  • de Vries, Paul & de Haan, Jan & van der Wal, Erna & Mariën, Gust, 2009. "A house price index based on the SPAR method," Journal of Housing Economics, Elsevier, vol. 18(3), pages 214-223, September.
  • Handle: RePEc:eee:jhouse:v:18:y:2009:i:3:p:214-223
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051-1377(09)00030-8
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baroni, Michel & Barthélémy, Fabrice & Mokrane, Mahdi, 2004. "Physical Real Estate: A Paris Repeat Sales Residential Index," ESSEC Working Papers DR 04007, ESSEC Research Center, ESSEC Business School.
    2. John M. Clapp & Carmelo Giaccotto, 1999. "Revisions in Repeat‐Sales Price Indexes: Here Today, Gone Tomorrow?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(1), pages 79-104, March.
    3. Robert J. Hill & Daniel Melser, 2008. "Hedonic Imputation And The Price Index Problem: An Application To Housing," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 593-609, October.
    4. S. Jansen & P. Vries & H. Coolen & C. Lamain & P. Boelhouwer, 2008. "Developing a House Price Index for The Netherlands: A Practical Application of Weighted Repeat Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 37(2), pages 163-186, August.
    5. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    6. Englund, Peter & Quigley, John M. & Redfearn, Christian L., 1998. "Improved Price Indexes for Real Estate: Measuring the Course of Swedish Housing Prices," Journal of Urban Economics, Elsevier, vol. 44(2), pages 171-196, September.
    7. Karl E. Case & Robert J. Shiller, 1987. "Prices of single-family homes since 1970: new indexes for four cities," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 45-56.
    8. Geltner, David Michael, 1991. "Smoothing in Appraisal-Based Returns," The Journal of Real Estate Finance and Economics, Springer, vol. 4(3), pages 327-345, September.
    9. Robert Edelstein & Daniel Quan, 2006. "How Does Appraisal Smoothing Bias Real Estate Returns Measurement?," The Journal of Real Estate Finance and Economics, Springer, vol. 32(1), pages 41-60, February.
    10. Bourassa, Steven C. & Hoesli, Martin & Sun, Jian, 2006. "A simple alternative house price index method," Journal of Housing Economics, Elsevier, vol. 15(1), pages 80-97, March.
    11. Jesse M. Abraham & William S. Schauman, 1991. "New Evidence on Home Prices from Freddie Mac Repeat Sales," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 333-352, September.
    12. Michelle H. Dreiman & Anthony Pennington-Cross, 2004. "Alternative Methods of Increasing the Precision of Weighted Repeat Sales House Prices Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 28(4), pages 299-317, May.
    13. Robert J. Shiller, 1991. "Arithmetic Repeat Sales Price Estimators," Cowles Foundation Discussion Papers 971, Cowles Foundation for Research in Economics, Yale University.
    14. N/A, 1991. "Appraisal," National Institute Economic Review, National Institute of Economic and Social Research, vol. 138(1), pages 3-5, November.
    15. Steele, Marion & Goy, Richard, 1997. "Short Holds, the Distributions of First and Second Sales, and Bias in the Repeat-Sales Price Index," The Journal of Real Estate Finance and Economics, Springer, vol. 14(1-2), pages 133-154, Jan.-Marc.
    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. Arthur Grimes & Chris Young, 2010. "Anticipatory Effects of Rail Upgrades: Auckland’s Western Line," Working Papers 10_11, Motu Economic and Public Policy Research.
    2. Carlos P. Barros & Luis A. Gil-Alana, 2013. "The Housing Markets in Spain and Portugal: Evidence of Persistence," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 19-32, November.
    3. Hill, Robert J. & Melser, Daniel & Syed, Iqbal, 2009. "Measuring a boom and bust: The Sydney housing market 2001-2006," Journal of Housing Economics, Elsevier, vol. 18(3), pages 193-205, September.
    4. repec:kap:jrefec:v:55:y:2017:i:4:d:10.1007_s11146-017-9632-1 is not listed on IDEAS
    5. J.W.A.M. Steegmans & W.H.J. Hassink, 2015. "Decreasing house prices and household mobility: An empirical study on loss aversion and negative equity," Working Papers 15-12, Utrecht School of Economics.
    6. Claudio Martins Gaiarsa, 2016. "Índices de preços de imóveis: quatro metodologias e três casos comparados – França, Espanha e EUA," LARES lares-16-gaiarsa_indices_, Latin American Real Estate Society (LARES).
    7. repec:eee:regeco:v:65:y:2017:i:c:p:56-64 is not listed on IDEAS
    8. Constantinescu, Mihnea & Francke, Marc, 2013. "The historical development of the Swiss rental market – A new price index," Journal of Housing Economics, Elsevier, vol. 22(2), pages 135-145.

    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:eee:jhouse:v:18:y:2009:i:3:p:214-223. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.