Housing prices

Kolej Universiti Islam Antarabangsa Selangor (KUIS) ABSTRAK Manusia memerlukan udara, makanan dan tempat tinggal untuk hidup. Rumah merupakan tempat tinggal yang juga sebagai tempat berlindung bagi mengaspirasikan kehidupan dengan sempurna. Perkembangan pesat ekonomi sejak akhir-akhir ini telah mengubah peranan rumah sebagai sumber pelaburan. Ia tidak lagi dilihat sebagai keperluan asas malah lebih cenderung kepada aset dan harta yang mencerminkan taraf hidup. Kenaikan harga rumah yang mendadak terutamanya di bandar mahupun pinggir bandar amat membimbangkan malah menekan bakal pembeli dan pengguna. Teknik atau kaedah Trend Projection merupakan antara salah satu teknik yang boleh digunakan bagi meramal harga rumah pada masa akan datang. Analisis dijalankan berdasarkan data sekunder yang diperoleh daripada Jabatan Penilaian dan Perkhidmatan Harta (JPPH) bagi tempoh lima tahun (2008-2013) memberikan satu persamaan regresi yang berasaskan masa bagi meramal harga rumah bagi tiga tahun ke hadapan. Hasil analisis ini mampu menyumbangkan salah satu strategi kepada bakal pembeli rumah khasnya di Malaysia dan dunia umumnya .

Price and income elasticities of demand for housing characteristics in the city of Barcelona, Regional
Studies. This paper estimates price and income elasticities of demand for housing characteristics using the information of properties appraised in the city of Barcelona (1998–2001). It employs a two-stage approach, estimating hedonic price equations for different districts in order to estimate subsequently the corresponding demand equations. The results allow an analysis to be made of the
complementarity or substitutability relationships among the characteristics analysed, and also to catalogue these characteristics as
goods. By knowing the price, cross and income elasticities of housing characteristics, policy recommendations can be made aboutthe type of housing units that are the most desirable to be subsidized.

This study examines the determinants of housing prices for single family homes in Cumming, Georgia, USA. Cumming is located with Forsyth County, one of the fastest-growing suburban areas in the United States. Results of the regression analysis indicate that the numbers of bathrooms, square footage, and school zoning are all statistically significant predictors of the price of a single-family home.

The aim of this paper is to provide information for tourist destinations
through an analysis of the valuation of the location and the seasonality
implicit in the price of accommodation. The study data are from
European municipalities on the Mediterranean coast. Using quantile
regression (that is, taking into account that demand valuation can
vary along the hotel price distribution), the author finds that the
effect of seasonality, although very important, is mainly constant
along the price distribution, with the exception of the greater
seasonality effect in Argelès-sur-Mer at higher percentiles. With
regard to the valuation of location, the fact of the hotel or the
apartment being in a French location is valued more highly at higher
percentiles.

A bubble in housing sector is defined as unprecedented upsurge in house prices which can not explained by fundamental determinants of the housing sector. This study examines demand side factors of real estate sector in Turkey in order to expose whether house price increases in the country can be counted as a bubble. We use the SVAR Blanchard-Quah model to empirically reveal the relationships between the real mortgage interest rates, house price gap, price-rent-ratio and purchasing power parity. The results of the paper indicate that real interest rates and other variables have a significant explanatory power in the long run whereas house prices can not be explained by these variables in the short run. Therefore it can be asserted that the house price increases in Turkey can not be evaluated as a bubble in the long run

As the global economy faces strong vulnerability in the current period and coming future, it is important to understand how the economic climate will respond. The past years have seen increase in unemployment rates and the resulting impact on the economies This paper has evaluated whether this change in unemployment will lead to an impact on the housing markets. Using data from 35 OECD countries and robust methodology, the result shows that unemployment has a strong and negative impact on housing prices. The heterogeneity analysis shows that lagged values of unemployment also affect housing prices in current period. Using sub-samples from different regions, the result shows that unemployment continues to show strong impact on housing prices especially in rich and European countries. The results are in line with literature, the results are robust across all configurations. Policymakers needs to use this and similar literature in understanding that unemployment may also affect economy through housing price channel as well as among other factors.

In this article, we combine data from the housing market with data from
a victimization survey to estimate the effect of crime perception on housing prices in
the City of Barcelona from 2004 to 2006. Using dwelling data and a hedonic price
model (using both OLS and quantile regressions), in the first stage, we estimate the
shadow price of the location of dwellings. In the second stage, we analyse the impact
of crime perception, after controlling for other district characteristics such as local
public spending and immigration, on this locational valuation. After accounting for
the possible endogeneity of crime and housing prices, our findings suggest that crime
exerts relevant costs beyond its direct costs. Indeed, a one standard deviation increase
in perceived security is associated with a 0.57% increase in the valuation of districts.
Moreover, in districts perceived as being less safe than the average for the City of
Barcelona, houses are highly discounted. Less safe districts have on average a valuation
that is 1.27% lower.

This paper estimates a hedonic price model which makes it possible to determine how the price of a unit varies with the set of attributes it possesses, in the Spanish housing
market. Concretely, and by means of capitalisation, hedonic price models can be used
as an instrument to capture how local public expenditures influence housing prices and, by extension, how homeowners can indirectly receive benefit from local public
investment. Using individual data for dwellings from the city of Barcelona (Spain) for
the period 1998–2001, it is found that local policies aimed at enhancing the quality of life or the location-specific characteristic of the city of Barcelona have a positive
impact on housing values.

Today, the size of the mortgage-backed asset market shows us that the housing market can profoundly affect not only the real economy but also the financial sector. The crisis in 2008 is a proof of this circumstance. Compared to developed countries, there is no deepened financial market for mortgage-backed assets in Turkey. However, in Turkey, which implements a growth strategy based on the construction sector, interventions in the housing market have become a part of the economic policy to keep the sector alive. For this reason, policymakers are trying to keep housing loan rates low to differentiate them from other interest rates. However, the effect of these interventions on housing loan rates on housing demand and housing prices is ambiguous. Therefore, the main objective of this study is to investigate the effects of housing loan interest rates on house prices in Turkey in the period of 2010-2020. To analyze the causality between housing loan rates and house prices indexes, we applied Hacker and Hatemi-J (2010) bootstrap Toda-Yamamoto causality test and Hatemi-J (2012) time-varying symmetric Toda-Yamamoto test. The main finding of the study is that there is no causality from the housing loan interest rates to the housing price index in the related period.

In this article, I use time-series models of construction and price levels in the San Francisco housing market to test claims that implementation of more strict zoning controls restricts housing construction and artificially inflates housing prices. The results do not support these claims. I argue that the pri-mary barrier to new housing construction derives from the interaction of financial market variables, household search behavior, and the unique char-acteristics of urban land markets that in tandem act to constrain new con-struction to high-end luxury segments of the local housing market. Increasing the supply of affordable housing in San Francisco will therefore require large-scale public subsidies to compensate for the failure of the market to meet the pressing housing needs of low-to-moderate-income households.

This study looks at the relationship between housing values (prices and rents) and the residential settlement of migrants in different neighbourhoods in Italian provincial capitals. We exploit here the high spatial resolution dataset on the settlement of migrants developed within the Data for Integration (D4I) project. The D4I information on resident population characteristics was merged with a dataset on housing values for civilian and economic residential units using boundaries defined by local housing market characteristics. The results suggest that: (1) more diverse neighbourhoods are also those with relatively lower housing values; (2) the relationship between housing values and the concentration of migrants is non-linear; and (3) the sign and significance of the association varies significantly depending on the origin of migrants.

In this study I empirically examine the impact of immigration on the dynamics of housing prices across Italian provinces from 1996 till 2007. The massive debate upon the impact of current intensive immigration flows on the wellbeing of the native Italian population and Europeans in general is mainly focused on labor market outcomes which is, however, only one of the channels though which the real income and wealth can alter. This paper contributes to our understanding of the influence that recent intensive immigration flows have on the Italian economy by estimating its impact on the housing market. Moreover, it exploits different methodological approach with respect to the approach dominating in migration literature. Using the number of valid residence permits as a measure of immigration stock and the self-reported housing values from the Survey of Households Income Wealth in Italy I find that the increase in the concentration of immigrants in the Italian provinces has a positive but declining effect on the average housing prices in provinces. The obtained results also indicate that an increase of in immigrant population leads to an increase in average housing prices. The performed Difference and System GMM estimations confirm both the positive response of average housing prices to the increase in immigrant population and the non-linearity of its response to immigrants’ concentration in all specifications.

RÉSUMÉ – Dans le cadre d’une étude de cas sur la région métropolitaine de la Californie du Sud, la question du prix du bien immobilier est mise en perpective de différentes pratiques des acteurs immobiliers et outils des politiques publiques qui rendent tangible la financiarisation de la production suburbaine. Le prix est en effet au coeur d’un système qui repose sur la circulation secondaire du capital, la captation de la rente foncière et l’investissement sur les marges suburbaines. La crise des subprimes a servi de révélateur de la puissance de ces logiques. Le pari sur la valeur immobilière future des biens structure la gouvernance locale, avec des systèmes contractuels entre les promoteurs, les juridictions locales, les districts et les propriétaires. L’étude des trajectoires locales (1980-2010) des valeurs immobilières met l’accent sur la dévalorisation relative d’une grande partie des biens dans ces types de lotissements, mettant à mal l’ensemble du système de production du suburbain.

Mots-clés : Prix immobilier – Crise – Financiarisation – Trajectoires – Suburbain

ABSTRACT – Based on a case study of metropolitan areas in Southern California, the paper aims at analyzing house prices in the light of practices and policies that yield a financialization of the suburban production. Property price is indeed central in a system based on secondary capital flow, suburban investment and land rent ultimately being captured by financial organizations. The subprime crisis acted as a momentum of financialization. A bet, or systemic anticipation on property price growth has been structuring local governance, and series of contractual agreements between developers, jurisdictions, districts and homeowners. The equilibrium of this system derives from a shared belief about housing price continuous growth. The analysis of local trajectories of price (1980-2010) yields unexpected results: negative trends and relative devalorization of housing is a major issue in suburban subdivisions, a systemic failure of the financialized suburban production system.

Keywords: Housing prices – Crisis – Financialization – Trajectories – Suburban

This article presents an integrated macro view of the Portuguese housing market with macroeconomic indicators. Firstly, it compares the housing market and several macroeconomic indicators from 2004 to 2018. Then, the dynamic analysis of the housing prices by different regions in Portugal and its typology included. Also, the article is complemented with the regression analysis to identify the relationship between the house prices and macroeconomic indicators. Results show that the current negative interest rates are increasing the demand for houses and the housing prices. The housing stock in Portugal is mostly fixed but may experience limited growth as the rebuild program and new constructions. GDP and the housing prices have a positive correlation. Houses in Algarve and Lisbon are markedly more expensive than in the interior. From the regression analysis, the unemployment rate is the closest correlated variable.