IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_12290.html
   My bibliography  Save this paper

Mind the Lag: Using Assessed and List Prices as Proxies for Housing Market Values

Author

Listed:
  • Gabriel M. Ahlfeldt
  • Hans R. A. Koster
  • Tu Giang Vu
  • Gabriel Ahlfeldt

Abstract

Property transaction prices are widely regarded as the best measure of property value, but are sometimes unavailable. Using data from the Netherlands and New York, we analyze whether list prices and assessed values are reliable substitutes. In the cross-section, both proxies strongly predict sales prices, and estimated hedonic implicit prices resemble those based on sales prices. Over time, there is a sluggish adjustment in both proxies, but much more so in assessed values - particularly when they are based on rental incomes. While assessed values are well-suited for cross-sectional hedonic modelling or the quantification of static quantitative spatial models, list prices are better suited for the estimation of hedonic implicit prices from variation over time, although some attenuation bias should be expected.

Suggested Citation

  • Gabriel M. Ahlfeldt & Hans R. A. Koster & Tu Giang Vu & Gabriel Ahlfeldt, 2025. "Mind the Lag: Using Assessed and List Prices as Proxies for Housing Market Values," CESifo Working Paper Series 12290, CESifo.
    • Handle: RePEc:ces:ceswps:_12290
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo1_wp12290.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    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:ces:ceswps:_12290. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.