A Simple Alternative House Price Index Method

Steven Bourassa, Martin Hoesli and Jian Sun ()
Additional contact information
Jian Sun: School of Urban and Public Affairs, University of Louisville

FAME Research Paper Series from International Center for Financial Asset Management and Engineering

Abstract: This paper presents the Sale Price Appraisal Ratio (SPAR) method for constructing house price indexes. The method, which uses ratios of transaction prices and previous appraised values to build up an index, has been applied since the early 1960s to produce semi-annual price indexes for regions and cities in New Zealand. We compare the official New Zealand indexes for three urban areas with repeat sales and hedonic indexes created from the same transactions data, and observe that the SPAR method produces an index very much like those produced by hedonic methods. Given the number of advantages and few disadvantages that we find for the SPAR method relative to the more traditional methods, we maintain that it should be considered by government agencies elsewhere when developing house price indexes.

Keywords: house; price; indexes (search for similar items in EconPapers)
JEL-codes: R31 (search for similar items in EconPapers)
Date: 2004-11
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.swissfinanceinstitute.ch/rp59.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.swissfinanceinstitute.ch/rp59.pdf [301 Moved Permanently]--> https://www.sfi.ch/rp59.pdf [302 Found]--> https://www.sfi.ch/en/rp59.pdf)

Related works:
Journal Article: A simple alternative house price index method (2006)
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:fam:rpseri:rp119

Access Statistics for this paper

More papers in FAME Research Paper Series from International Center for Financial Asset Management and Engineering Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().