The concept of market absorption and carrying capacity in economic terms are adequate to the real estate market, even though the legislator uses only the concept of the absorptive capacity of the ...area in the planning process. The aim of the study is to discuss the concept of carrying capacity and absorption of the real estate market in economic and planning terms as well as the application of conclusions from literature studies and determination of capacity and absorption on a specific selected local market.
In the empirical part, a model of demand for space for detached housing development (market absorption) was built as a function of price, income and expenses for complementary goods.
At the same time, as a complementary good for the purchase of land for the construction of a house, the purchase of a flat and purchase of a real estate built-up with a detached house were accepted. On the other hand, reference was made to absorption understood adequately to planning documents. It was discussed whether the concept, interpreted in two ways, leads to the absorption of the same area on the local market. The analysis uses data from the Register of Prices and Values of Starosty County Price and Value Register, planning documents as well as data resources on statistics, and public information and own research.
This study aims to explore whether the intensity of internet searches, according to the Google Trends search volume index (SVI), is a predictor of changes in real estate prices. The motivation of ...this study is the possibility to extend the understanding of the extra predictive power of Google search engine query volume of future housing price change (shift direction) by (i) the introduction of a research approach that combines the advantages of the complementary use of cross-correlation analysis and machine learning classification algorithms; (ii) applying the multi-class HPI values classifier which allows predicting the housing price increase, decrease or relative stability; (iii) exploiting the SVI that relates to interests in both 'real estate' and 'credit to buy real estate'; (iv) evaluation of the introduced approach in the context of the Polish real estate market. The main theoretical contribution of our work is a confirmation that the freely available information regarding Google user searches can provide an in-depth insight into enriching the generally accepted statistics on supply and demand in the real estate market. From the practical perspective, this research confirms that SVI can be associated as a sole determinant to anticipate the housing price change with time-lag sufficient for making decisions regarding the purchase (sale) of individual property or the real estate market control. Such findings can be also helpful for researchers who intend to use Google Trends data as an extra variable from demand side to improve the prediction accuracy if it is included in the model which is based on the existing housing prices determinants.
The energy issue has given rise to a prolific research field, which branches into several strands. One of these strands focuses on the role played by building energy features in shaping property ...prices. Indeed, market players are expected to show a higher willingness to pay for building units characterized by higher energy performance. The study of the so-called price premium for building energy efficiency has flourished in the last decade or so; plenty of evidence is now available concerning its occurrence, although its magnitude is still debated. The literature relies on the methodological frameworks of statistical modeling and multiple regression, primarily employing hedonic price models. Lately, spatial autoregressive models have also been adopted. Here, we propose to deal with estimation of the price premium by adopting an innovative perspective. In particular, we use a methodological framework in which regression models are complemented with a multi-criteria optimization approach. Using a spatial autoregressive model first, and with D as the reference energy rating band, we find the following price premiums: 55% for A4, 42% for A3 to A, 20% for B or C, −14% for F, and −29% for G. The multi-criteria optimization approach proves efficient in estimating the price premium. The estimates above are essentially confirmed: the results converge for all the energy rating bands except for G.
This study utilizes changes in the catchment areas of public schools in Vancouver, British Columbia, to measure the residential price capitalization of school quality. Specifications that employ ...repeat sales methods to control for time-invariant neighborhood effects and disaggregated price indexes to capture time-varying neighborhood price appreciation reveal significant effects of secondary school performance on residential prices. However, when we add controls for long-run price trends in rezoned areas, only prices of residences likely to be purchased by highincome families appear to have been affected by changes in school quality induced by rezoning.
Are focal points important for determining the outcome of high-stakes negotiations? We investigate this question by examining the role that round numbers play as focal points in negotiations in the ...housing market. Using a large dataset on home transactions in the U.S., we document sharp spikes in the distribution of final negotiated house prices at round numbers, especially those divisible by $50,000. The patterns cannot be easily explained by simple stories of convenience rounding or by list prices. We conclude that round numbers can serve as focal points, even in settings with very high stakes.
This paper develops and simulates a model to examine whether land speculation is primarily a cause of, or a symptom of, property cycles. The model suggests that the volatility of prices—the biggest ...purported downside of "speculation"—is strongly related to supply conditions. Moreover, while demand conditions in general, and speculation in particular, contribute to boom and bust cycles in housing and real estate markets, the impact of speculation is dominated by the effect of the price elasticity of supply. In fact, the large impacts of speculation are only observed when supply is inelastic.
We develop a macroeconomic model with an imperfectly competitive bank-loans market and collateral constraints that tie investors' credit capacity to the value of their real estate holdings. Lending ...margins are optimally set by banks and have a significant effect on aggregate variables. Over the long run, stronger banking competition increases output by triggering a reallocation of available collateral towards investors. In the short-run, output, credit and housing prices are more responsive on impact to shocks in an environment of highly competitive banks. Also, stronger banking competition implies higher (lower) persistency of credit and output after a monetary (credit crunch) shock.
The introduction of the property value tax in Poland may lead to an increase in the tax burden on real estate. Pilot studies may be carried out on samples and the results should feature a high degree ...of certainty as to the extrapolation of the results on populations (e.g. entire municipalities). Each study may, for various reasons, include outliers in the analyzed data sets. If their presence results from measurement errors or other reasons that cause such observations not to be the result of naturally occurring processes, they should be omitted in the calculations, because they interfere with the study of the occurring regularities.
The study presents the results of statistical modelling carried out to determine whether individual objects (land properties), due to their attributes, are at risk of increasing the tax burden as a result of the introduction of
tax. First, logistic regression model estimation was carried out for the entire set of analyzed properties. Next, several methods of outlier detection were applied, and model estimation was repeated without the observations, i.e. real estates, pointed out as abnormal.
The objective of the study is to verify the usefulness of outlier detecting methods in the context of improving the classification results of the analyzed properties.
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