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

Gabriel M. Ahlfeldt, Hans Koster, Tu Giang Vu and Gabriel Ahlfeldt

No 12290, CESifo Working Paper Series from CESifo

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.

Keywords: assessed values; list prices; sales prices; transaction prices; hedonic pricing; historic amenities; wind turbines; transit accessibility (search for similar items in EconPapers)
JEL-codes: C21 C23 R31 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: Mind the lag: Using assessed and list prices as proxies for housing market values (2025)
Working Paper: Mind the lag: Using assessed and list prices as proxies for housing market values (2025)
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