IDEAS home Printed from https://ideas.repec.org/h/nbp/nbpchp/15.html
   My bibliography  Save this book chapter

Measuring the effect of the real estate bubble: a house price index for Bilbao

In: Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis, 2013

Author

Listed:
  • Maria J. Barcena
  • Patricia Mendez
  • Maria B. Palacios
  • Fernando Tusell

Abstract

Houses are traded at relatively infrequent times and can hardly be standardized: two equally built and furnished houses may command widely different prices in the market on account of their different location or even orientation. Clearly, the computation of an index such as Laspeyres’ cannot be contemplated, both because of lack of standardization and infrequent trading. On the other hand, there is little market visibility; transaction prices are seldom published, further increasing the difficulties inherent to the construction of a house price index. In this paper we use advertised (selling) prices as a proxy of transaction prices, and geographically weighted hedonic models to account for heterogeneity in quality and location. This gives a workable alternative to conventional approaches with the added benefit that it can provide price information in near-real time.

Suggested Citation

  • Maria J. Barcena & Patricia Mendez & Maria B. Palacios & Fernando Tusell, 2013. "Measuring the effect of the real estate bubble: a house price index for Bilbao," Chapters from NBP Conference Publications, in: Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski (ed.), Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis, 2013, chapter 15, pages 127-156, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpchp:15
    as

    Download full text from publisher

    File URL: https://static.nbp.pl/publikacje/materialy-i-studia/182_en_2.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bourassa, Steven C. & Hoesli, Martin & Sun, Jian, 2006. "A simple alternative house price index method," Journal of Housing Economics, Elsevier, vol. 15(1), pages 80-97, March.
    2. Ghislain Geniaux & Claude Napoléone, 2008. "Semi-Parametric Tools for Spatial Hedonic Models: An Introduction to Mixed Geographically Weighted Regression and Geoadditive Models," Springer Books, in: Andrea Baranzini & José Ramirez & Caroline Schaerer & Philippe Thalmann (ed.), Hedonic Methods in Housing Markets, chapter 5, pages 101-127, Springer.
    3. Daniel P. McMillen & Christopher Redfearn, 2007. "Estimation, Interpretation, and Hypothesis Testing for Nonparametric Hedonic House Price Functions," Working Paper 8550, USC Lusk Center for Real Estate.
    4. Håvard Rue & Sara Martino & Nicolas Chopin, 2009. "Approximate Bayesian inference for latent Gaussian models by using integrated nested Laplace approximations," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 71(2), pages 319-392, April.
    5. Simon N. Wood, 2004. "Stable and Efficient Multiple Smoothing Parameter Estimation for Generalized Additive Models," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 673-686, January.
    6. David Wheeler & Michael Tiefelsdorf, 2005. "Multicollinearity and correlation among local regression coefficients in geographically weighted regression," Journal of Geographical Systems, Springer, vol. 7(2), pages 161-187, June.
    7. Andrea Baranzini & José Ramirez & Caroline Schaerer & Philippe Thalmann (ed.), 2008. "Hedonic Methods in Housing Markets," Springer Books, Springer, number 978-0-387-76815-1, October.
    8. John M. Clapp, 2004. "A Semiparametric Method for Estimating Local House Price Indices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(1), pages 127-160, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Widłak, Marta & Waszczuk, Joanna & Olszewski, Krzysztof, 2014. "Spatial and hedonic analysis of house price dynamics in Warsaw," MPRA Paper 60479, University Library of Munich, Germany.
    2. M. Bárcena & P. Menéndez & M. Palacios & F. Tusell, 2014. "Alleviating the effect of collinearity in geographically weighted regression," Journal of Geographical Systems, Springer, vol. 16(4), pages 441-466, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Löchl, Michael & Axhausen, Kay W., 2010. "Modelling hedonic residential rents for land use and transport simulation while considering spatial effects," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(2), pages 39-63.
    2. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
    3. Jeanne Dachary-Bernard & Frédéric Gaschet & Sandrine Lyser & Guillaume Pouyanne & Stéphane Virol, 2011. "L'impact de la littoralisation sur les marchés fonciers : une approche comparative des côtes basque et charentaise," Post-Print hal-00688634, HAL.
    4. Marc K. Francke & Alex Minne, 2017. "The Hierarchical Repeat Sales Model for Granular Commercial Real Estate and Residential Price Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 55(4), pages 511-532, November.
    5. Nakamura, Shohei, 2017. "Tenure Security Premium in Informal Housing Markets: A Spatial Hedonic Analysis," World Development, Elsevier, vol. 89(C), pages 184-198.
    6. Gong Yunlong & de Haan Jan, 2018. "Accounting for Spatial Variation of Land Prices in Hedonic Imputation House Price Indices: a Semi-Parametric Approach," Journal of Official Statistics, Sciendo, vol. 34(3), pages 695-720, September.
    7. Stéphane Virol & Guillaume Pouyanne & Sandrine Lyser & Frédéric Gaschet & Jeanne Dachary-Bernard, 2011. "L’impact de la littoralisation sur les marchés fonciers. Une approche comparative des côtes basque et charentaise," Économie et Statistique, Programme National Persée, vol. 444(1), pages 127-154.
    8. Marc Francke, 2010. "Repeat Sales Index for Thin Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 41(1), pages 24-52, July.
    9. Wenjie Wu, 2012. "Spatial Variations in Amenity Values: New Evidence from Beijing, China," SERC Discussion Papers 0113, Centre for Economic Performance, LSE.
    10. Wrenn, Douglas H. & Sam, Abdoul G., 2014. "Geographically and temporally weighted likelihood regression: Exploring the spatiotemporal determinants of land use change," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 60-74.
    11. Redfearn, Christian L., 2009. "How informative are average effects? Hedonic regression and amenity capitalization in complex urban housing markets," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 297-306, May.
    12. Boris Kauhl & Werner Maier & Jürgen Schweikart & Andrea Keste & Marita Moskwyn, 2018. "Who is where at risk for Chronic Obstructive Pulmonary Disease? A spatial epidemiological analysis of health insurance claims for COPD in Northeastern Germany," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-18, February.
    13. Nikoline N. Knudsen & Jörg Schullehner & Birgitte Hansen & Lisbeth F. Jørgensen & Søren M. Kristiansen & Denitza D. Voutchkova & Thomas A. Gerds & Per K. Andersen & Kristine Bihrmann & Morten Grønbæk , 2017. "Lithium in Drinking Water and Incidence of Suicide: A Nationwide Individual-Level Cohort Study with 22 Years of Follow-Up," IJERPH, MDPI, vol. 14(6), pages 1-13, June.
    14. Leonardo Padilla & Bernado Lagos‐Álvarez & Jorge Mateu & Emilio Porcu, 2020. "Space‐time autoregressive estimation and prediction with missing data based on Kalman filtering," Environmetrics, John Wiley & Sons, Ltd., vol. 31(7), November.
    15. Chih-Hao Wang & Na Chen, 2021. "A multi-objective optimization approach to balancing economic efficiency and equity in accessibility to multi-use paths," Transportation, Springer, vol. 48(4), pages 1967-1986, August.
    16. Stefan Sebastian Fahrländer, 2006. "Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(IV), pages 501-528, December.
    17. Scott, Ryan P. & Scott, Tyler A., 2019. "Investing in collaboration for safety: Assessing grants to states for oil and gas distribution pipeline safety program enhancement," Energy Policy, Elsevier, vol. 124(C), pages 332-345.
    18. Christopher Muller & Daniel Schrage, 2014. "Mass Imprisonment and Trust in the Law," The ANNALS of the American Academy of Political and Social Science, , vol. 651(1), pages 139-158, January.
    19. Liang Peng, 2012. "Repeat Sales Regression on Heterogeneous Properties," The Journal of Real Estate Finance and Economics, Springer, vol. 45(3), pages 804-827, October.
    20. Cho, Daegon & Hwang, Youngdeok & Park, Jongwon, 2018. "More buzz, more vibes: Impact of social media on concert distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 103-113.

    More about this item

    Keywords

    house prices; spatial econometrics; semi-parametric models;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpchp:15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jakub Growiec (email available below). General contact details of provider: https://edirc.repec.org/data/nbpgvpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.