Tracking Home-Owners’ Sentiments: Subjective Indices and Convergent Validity

Sofie R. Waltl () and Anthony Lepinteur ()
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Sofie R. Waltl: Vienna University of Economics and Business
Anthony Lepinteur: University of Luxembourg

The Journal of Real Estate Finance and Economics, 2025, vol. 70, issue 4, No 4, 706-734

Abstract: Abstract Surveys regularly ask home-owners to guess what their property might be worth in the current housing market. We develop suitable statistical techniques to construct hedonic and repeat-sales style house price indices from these owner-estimated values (OEVs). The resulting series are then linked to a large set of quality-adjusted residential property price indices estimated from transaction data allowing us to perform a variety of convergent validity tests. Based on results for 20 countries, several decades and different OEV elicitation techniques, we conclude that the “wisdom of the home-owner crowd” is sufficient to study objective house price dynamics. Yet, surveys fail to accurately measure house price levels.

Keywords: Housing markets; Subjective data; Convergent validity; House price indices (search for similar items in EconPapers)
JEL-codes: C43 D90 E32 R30 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11146-023-09949-w

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