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Home Price Sensitivity to Capital Market Factors: Analysis of Zip Code Data


  • Christopher W. Anderson

    () (University of Kansas)

  • Eli Beracha

    () (East Carolina University)


To what extent do capital market factors affect home prices? This paper examines quarterly changes in median sales prices for homes across more than 3,000 U.S. ZIP Codes in 203 metropolitan areas from 2001 to 2006 to investigate home price sensitivity to returns on U.S. stocks and bonds. The findings reveal that home-price changes are positively related to returns on stocks and bonds, on average. They also show that home prices in higher priced ZIP Codes have greater exposure to capital market risk factors, consistent with higher levels of wealth and capital market participation, on average, among owners of higher priced homes.

Suggested Citation

  • Christopher W. Anderson & Eli Beracha, 2010. "Home Price Sensitivity to Capital Market Factors: Analysis of Zip Code Data," Journal of Real Estate Research, American Real Estate Society, vol. 32(2), pages 161-186.
  • Handle: RePEc:jre:issued:v:32:n:2:2010:p:161-186

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    References listed on IDEAS

    1. Capozza, Dennis & Li, Yuming, 1994. "The Intensity and Timing of Investment: The Case of Land," American Economic Review, American Economic Association, vol. 84(4), pages 889-904, September.
    2. Kerry D. Vandell, 1991. "Business versus Real Estate Value in Shopping Mall Valuation: A Critical Examination," Wisconsin-Madison CULER working papers 91-03, University of Wisconsin Center for Urban Land Economic Research.
    3. Jeffrey D. Fisher & George H. Lentz, 1990. "Business Enterprise Value in Shopping Malls: An Empirical Test," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 167-175.
    4. Titman, Sheridan, 1985. "Urban Land Prices under Uncertainty," American Economic Review, American Economic Association, vol. 75(3), pages 505-514, June.
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    1. repec:kap:jrefec:v:55:y:2017:i:4:d:10.1007_s11146-016-9571-2 is not listed on IDEAS

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    JEL classification:

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


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