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Hedonic Estimates of Regional Constant Quality House Prices

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Abstract

It is has been shown that regional housing price indexes reported by the National Association of Realtors (NAR) misstate price change over time due to failure to control for variation in housing quality. However, the erroneous assumption that implicit housing characteristic prices are invariant across regions of the United States may also bias regional constant quality hedonic price indexes. This study shows that housing characteristic prices derived from NAR data do vary significantly by region. It then compares regional price indexes, which do and do not control for regional variation in housing characteristic prices, to demonstrate the biasing effect.

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  • Marvin L. Wolverton & Jimmy Senteza, 2000. "Hedonic Estimates of Regional Constant Quality House Prices," Journal of Real Estate Research, American Real Estate Society, vol. 19(3), pages 235-253.
    • Handle: RePEc:jre:issued:v:19:n:3:2000:p:235-253
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    Cited by:

    1. Lawrence W C Lai & Kwong Wing Chau & Daniel C W Ho & Veronica Y Y Lin, 2006. "Impact of Political Incidents, Financial Crises, and Severe Acute Respiratory Syndrome on Hong Kong Property Buyers," Environment and Planning B, , vol. 33(3), pages 413-433, June.
    2. Bernard Thion & Tatiana Bouzdine Chameeva, 2001. "Comparative Analysis of Several Models of Price Indices in Real Estate Transactions," ERES eres2001_285, European Real Estate Society (ERES).
    3. Eurostat, 2013. "Handbook on Residential Property Prices Indices," World Bank Publications - Books, The World Bank Group, number 17280.
    4. Marilena Biey & Roberto Zanola, 2005. "The Market for Picasso Prints: A Hybrid Model Approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(2), pages 127-136, May.
    5. Stephan Haroutunian & Pandelis Mitsis & Panos Pashardes, 2005. "Using Brochure Information for the Hedonic Analysis of Holiday Packages," Tourism Economics, , vol. 11(1), pages 69-84, March.
    6. Renigier-Biłozor Małgorzata & Wiśniewski Radosław, 2012. "The Impact of Macroeconomic Factors on Residential Property Price Indices in Europe," Folia Oeconomica Stetinensia, Sciendo, vol. 12(2), pages 103-125, December.
    7. Steffen Sebastian & R. Maurer & Martin Pitzer, 2001. "Construction of a transaction based price index for the Paris housing market," ERES eres2001_276, European Real Estate Society (ERES).
    8. David Duffy, 2001. "Does Controlling For Neighbourhood Quality Matter More For Different Types Of House," Economics Department Working Paper Series n1091001, Department of Economics, National University of Ireland - Maynooth.
    9. Raquel Arévalo Tomé & José María Chamorro Rivas, 2003. "A Quality Index for Spanish Housing," Working Papers 0309, Universidade de Vigo, Departamento de Economía Aplicada.
    10. Raquel Arévalo Tomé & José María Chamorro Rivas, "undated". "Geographic Heterogeneity in Housing. Evidence from Spain," Studies on the Spanish Economy 203, FEDEA.
    11. Chieh-hsuan Wang & Chien-ping Chung & Jen-Te Hwang, 2012. "Hedonic and GMM Estimates of the Relationship between House Prices and Rents in Taiwan," Economics Bulletin, AccessEcon, vol. 32(3), pages 2231-2245.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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