IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2013_132.html
   My bibliography  Save this paper

The Effect of Short-Run Market Expectations on House Prices: A Spatiotemporal Modelling Approach

Author

Listed:
  • Jean Dubé
  • Diego Legros
  • Sotirios Thanos

Abstract

Spatial econometrics has been widely applied to Hedonic Pricing models in the literature to determine spatial spillover effects between house prices in close proximity. An approach is developed here to test for a short-run market expectations effect: the degree to which the expectations of sellers and market intermediaries (e.g. agents, lawyers, and surveyors) affect the final house price. This is the information effect on potential house buyers from asking price setting in the market. We employ a typical dataset composed from sales observations each at a specific location and distinct moment in time. An emerging body of literature demonstrates that the temporal dimension of such data, when ignored, has serious implications for spatial autocorrelation models. By following this approach, we can further utilise the spatiotemporal patterns in such data to successfully decompose the market expectation effects from the typical spatiotemporal spillovers.

Suggested Citation

  • Jean Dubé & Diego Legros & Sotirios Thanos, 2013. "The Effect of Short-Run Market Expectations on House Prices: A Spatiotemporal Modelling Approach," ERES eres2013_132, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2013_132
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2013-132
    Download Restriction: no

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:arz:wpaper:eres2013_132. 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: (Architexturez Imprints). General contact details of provider: http://edirc.repec.org/data/eressea.html .

    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.

    We have no references for this item. You can help adding them by using 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.