Virtual tours such as pre-recorded videos or self-guided virtual reality (VR) tours represent marketing strategies that agents can use to promote homes for sale. Assuming agents aim at maximizing ...their net commissions, we expect virtual tours, which require more agent effort and are more costly, to be used for homes that are difficult to show due to being owner- or tenant-occupied. Using 34,359 single-family transactions from multiple US markets, we show that virtual tours impact the sales prices of occupied homes (1) directly (main effect) and (2) indirectly through an interaction with time on market (TOM). However, this impact differs in directionality and size across price segments and occupier type. The use of virtual tours has no effect on the sales prices of vacant homes. Our results suggest that virtual tours are effective strategies to overcome the difficulty of showing homes and moderate the price-TOM relation.
This study investigates the effect of the COVID-19 pandemic on the residential real estate prices in Turkey. This study indicates the effect of COVID-19, loan package, macroeconomic and behavioral ...control variables on abnormal returns of residential real estate prices during the event window. This study consists of three econometric steps. Firstly, the abnormal returns of the residential real estate prices are obtained by using an event study. Secondly, the effect of the COVID-19 pandemic on abnormal returns of residential real estate prices was estimated by panel data analysis for regional and city levels. According to the findings of the city level, the COVID-19 pandemic has a negative effect on abnormal returns of residential prices, as expected. However, the regional analysis shows mainly a positive COVID-19 effect.
The present paper develops an econometric model of the real estate cycle, focused on the analysis of the residential market in Spain, and aims to predict the future evolution of the average and ...fundamental prices of the housing industry. Unlike traditional models, the Econometric Model developed incorporates not only an extrinsic and intrinsic approach, but also analytical assumptions and criteria inherited from the Behavioral School. Contrasting the Modern Financial School theory, the Behavioral Finance School assumes the presence of irrational investors in the market. Thereby irrational decisions substantially influence, in a persistent way, whether underestimating or overestimating, the evolution of asset prices. This irrational influence is the fundamental basis of both expansive and depressive phases that shape the real estate cycle.
The present paper develops an econometric model of the real estate cycle, focused on the analysis of the residential market in Spain, and aims to predict the future evolution of the average and ...fundamental prices of the housing industry. Unlike traditional models, the Econometric Model developed incorporates not only an extrinsic and intrinsic approach, but also analytical assumptions and criteria inherited from the Behavioral School.Contrasting the Modern Financial School theory, the Behavioral Finance School assumes the presence of irrational investors in the market. Thereby irrational decisions substantially influence, in a persistent way, whether underestimating or overestimating, the evolution of asset prices. This irrational influence is the fundamental basis of both expansive and depressive phases that shape the real estate cycle.
El presente documento desarrolla un modelo econométrico del ciclo inmobiliario, concretamente del mercado residencial, con la finalidad de prever la evolución futura de los precios del sector. A diferencia de otros modelos, nuestra propuesta incorpora, no sólo un acercamiento que combina el enfoque extrínseco e intrínseco, si no también hipótesis y criterios de la Escuela Conductual.En contraste con la escuela financiera moderna, las finanzas conductuales asumen la presencia de inversores irracionales en el mercado, que influyen en los precios infravalorándolos o sobrevalorándolos de forma persistente y duradera, factor que constituye la base de las fases expansivas y depresivas que desarrollan el ciclo inmobiliario.
During the whole year 2015 in Slovakia there were significant price increase in residential real estate, which was caused mostly by the rapidly increasing demand for apartments. Annual growth of ...average prices of flats by 6.4% in the fourth quarter of 2015 exceed 6%, which the European Commission determined as the threshold value for a warning against potential risk of macroeconomic imbalance due to stronger annual growth in housing prices. From this perspective, the future development of apartment prices in Slovak conditions deserves more attention in several regions. Significantly increasing demand for housing and its dynamically growing prices are perceived by some observers as a possible signal of inflating a new real estate bubble. However it must be add that these activities on the Slovak housing market at the end of 2015 clearly contributed to more and more favorable credit terms. In the near future, it can be expected remaining a persistent interest of households in satisfying their housing needs. In the following article, authors explore determinants of the impact on the current growth of residential real estate prices in Slovakia and their interdependencies.
The present paper develops an econometric model of the real estate cycle, focused on the analysis of the residential market in Spain, and aims to predict the future evolution of the average and ...fundamental prices of the housing industry. Unlike traditional models, the
Econometric Model developed incorporates not only an extrinsic and intrinsic approach, but also analytical assumptions and criteria inherited from the Behavioral School.
Contrasting the Modern Financial School theory, the Behavioral Finance School assumes the
presence of irrational investors in the market. Thereby irrational decisions substantially influence, in a persistent way, whether underestimating or overesti mating, the evolution of asset prices. This irrational influence is the fundamental basis of both expansive and
depressive phases that shape the real estate cycle.
Peer Reviewed
CASTELLÀ El presente documento desarrolla un modelo econométrico del ciclo inmobiliario, concretamente del mercado residencial, con la finalidad de prever la evolución futura de los precios del ...sector. A diferencia de otros modelos, nuestra propuesta incorpora, no sólo un acercamiento que combina el enfoque extrínseco e intrínseco, si no también hipótesis y criterios de la Escuela Conductual.
En contraste con la escuela financiera moderna, las finanzas conductuales asumen la presencia de inversores irracionales en el mercado, que influyen en los precios infravalorándolos o sobrevalorándolos de forma persistente y duradera, factor que constituye la base de las fases expansivas y depresivas que desarrollan el ciclo inmobiliario.
ANGLÈSThe present paper develops an econometric model of the real estate cycle, focused on the analysis of the residential market in Spain, and aims to predict the future evolution of the average and fundamental prices of the housing industry. Unlike traditional models, the Econometric Model developed incorporates not only an extrinsic and intrinsic approach, but also analytical assumptions and criteria inherited from the Behavioral School.
Contrasting the Modern Financial School theory, the Behavioral Finance School assumes the presence of irrational investors in the market. Thereby irrational decisions substantially influence, in a persistent way, whether underestimating or overestimating, the evolution of asset prices. This irrational influence is the fundamental basis of both expansive and depressive phases that shape the real estate cycle.
Peer Reviewed
This article investigates the dynamic process of convergence among a set of real alternative (art, fine wine, gold, residential real estate) and financial assets in the US context over the period ...2003–2019. The objective is to explore the time-varying behavior of their links considering structural breaks coming from exogenous economic and financial shocks that prevent market convergence from being a linear process. Using a procedure that determines endogenously multiple structural breaks and a rolling co-integration framework, we show that price co-movements depend on the global financial and economic environments. Our results confirm the existence of a long-term co-integration relationship among price series but with structural breaks. We find that exogenous shocks lead to a lower degree of convergence of real alternative and conventional assets, and expansion phases promote market convergence between them. Our results contribute to guiding investors in their efforts to diversify their wealth and portfolio.
Within housing literature, the presence of spatial autocorrelation (S.A.) in housing prices is typically examined horizontally in a two-dimensional setting. However, in the context of apartment ...buildings, there is also a vertical component of S.A. for housing units located on different floor levels. This paper therefore explores the determinants of both horizontal and vertical S.A. within residential property prices. First, we posit that S.A. in housing prices is a consequence of the price discovery process of real estate, in which property traders acquire price information from recent market transactions (i.e., comparables) to value a subject property. Furthermore, we contend that the extent to which property traders rely on comparables to determine housing prices is governed by the liquidity and volatility conditions of the market, which in turn affects the magnitude of the S.A. By developing and testing several spatial autoregressive hedonic models using open market transaction data for the Hong Kong residential property market, we find that market liquidity tends to increase both vertical and horizontal S.A., whilst market volatility is more prone to increase vertical S.A. but depress horizontal S.A.
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