Price Indexes for Short Horizons, Thin Markets or Smaller Cities

Karl L. Guntermann (), Crocker Liu () and Adam D. Nowak ()
Additional contact information
Karl L. Guntermann: Arizona State University
Crocker Liu: Cornell University
Adam D. Nowak: West Virginia University

Journal of Real Estate Research, 2016, vol. 38, issue 1, 93-128

Abstract: We propose a modification to the repeat sales procedure which incorporates pricing information from houses in close proximity that have sold only once. This nearest neighbor framework, allows for both idiosyncratic property-specific effects and for common location effects in constructing sale pairs. The distinguishing feature of our model is that a significant percentage of discarded (non-repeat sale) observations are utilized. Like the repeat sales approach, the availability of housing attributes is not required to implement our model in contrast to other hybrid models. The only additional calculation required is pairwise distances which are used in lieu of property attributes in hybrid models. Our resulting model is not only parsimonious but also produces relatively tighter pricing interval estimates. A key advantage of our approach is that it can be used to obtain price estimates in thin markets and smaller cities that have relatively fewer transactions.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/forth/vol38n01/9853-04.93_128.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:38:n:1:2016:p:93-128

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Series data maintained by JRER Graduate Assistant/Webmaster ().