scholarly journals Diversified Price Dynamics in some Sub-Segments of the Housing Market

2015 ◽  
Vol 15 (1) ◽  
pp. 162-173
Author(s):  
Sebastian G. Kokot
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Real Estate Market ◽  
Quality Of Data ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
The Real Estate Market ◽  
Price Movements

Abstract The observation of price movements on the real estate market is an extremely difficult task as we have to face problems belonging to two spheres. The first of them is the specific nature of real estate as marketable objects and of the real estate market itself. The second one is the character and quality of data on real estate transaction prices. In this article the author, based on an empirical study, attempts to prove that even in a single segment of a local real estate market the prices in individual sub-segments can fluctuate with different intensity. The range of price movements can be so vast that it seems pointless to apply a single averaged price index for the whole segment, and usually that is what analysts do.

scholarly journals Evaluation of the Applicability of Statistical Methods in Studies on Price Dynamics on the Real Estate Market

2013 ◽  
Vol 21 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Sebastian Kokot ◽  
Marcin Bas
Keyword(s):  
Real Estate ◽  
Traditional Approach ◽  
Real Estate Market ◽  
Price Dynamics ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
Time Period ◽  
The Real Estate Market ◽  
Real Estate Prices

Abstract The specific character of the real estate market is the reason why observations of transaction prices seen as statistical variables are taken in a non-standard way. In the traditional approach each time period or specific moments of time are attributed with one observation of a studied variable per one object. In the case of the real estate market, this is not possible since transactions relate to different objects, i.e., properties, and occur at irregular, or even random, moments. This is why traditional methods used to examine the dynamics of economic phenomena must be adapted to specific conditions on the real estate market. Keeping that in mind, the aim of this paper is to adapt classical statistical examination methods of dynamics to specific conditions of the real estate market followed by the actual examination of the dynamics of real estate prices in three sub-segments of the housing market in Szczecin. On its basis, the authors evaluate various methods of examining real estate price dynamics in terms of their applicability in real estate appraisal procedures and, in a broader perspective, present characteristic phenomena that can be observed on the real estate market.

scholarly journals Use of Statistical Models for Simulating Transactions on the Real Estate Market

2015 ◽  
Vol 23 (2) ◽  
pp. 102-111 ◽  
Author(s):  
Radosław Cellmer ◽  
Katarzyna Szczepankowska
Keyword(s):  
Probability Distribution ◽  
Real Estate ◽  
Statistical Models ◽  
Real Estate Market ◽  
Model Parameters ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
The Real Estate Market ◽  
Real Estate Prices

Abstract The regularities and relations between real estate prices and the factors that shape them may be presented in the form of statistical models, thanks to which the diagnosis and prediction of prices is possible. A formal description of empirical observation presented in the form of regressive models also offers a possibility for creating certain phenomena in a virtual dimension. Market phenomena cannot be fully described with the use of determinist models, which clarify only a part of price variation. The predicted price is, in this situation, a special case of implementing a random function. Assuming that other implementations are also possible, regressive models may constitute a basis for simulation, which results in the procurement of a future image of the market. Simulation may refer both to real estate prices and transaction prices. The basis for price simulation may be familiarity with the structure of the analyzed market data. Assuming that this structure has a static character, simulation of real estate prices is performed on the basis of familiarity with the probability distribution and a generator of random numbers. The basis for price simulation is familiarity with model parameters and probability distribution of the random factor. The study presents the core and theoretical description of a transaction simulation on the real estate market, as well as the results of an experiment regarding transaction prices of office real estate located within the area of the city of Olsztyn. The result of the study is a collection of virtual real properties with known features and simulated prices, constituting a reflection of market processes which may take place in the near future. Comparison between the simulated characteristic and actual transactions in turn allows the correctness of the description of reality by the model to be verified.

scholarly journals The Use of the Geographically Weighted Regression for the Real Estate Market Analysis

2012 ◽  
Vol 11 (1) ◽  
pp. 19-32 ◽  
Author(s):  
Radosław Cellmer
Keyword(s):  
Real Estate ◽  
Geographically Weighted Regression ◽  
Real Estate Market ◽  
Weighted Regression ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
The Real Estate Market ◽  
Market Transaction ◽  
Grading Scale

Abstract The article presents a method for developing geographically weighted regression models for analyzing real estate market transaction prices and evaluating the effect of selected property attributes on the prices and value of real estate. The property attributes were evaluated on a grading scale to determine the relative (percentage) indicators characterizing the relationships on the real estate market. The market data were analyzed to evaluate the influence of infrastructure availability on the prices of land in Olsztyn. The results were used to assess the effect of every utility service on the property transaction prices.

scholarly journals The Use of Indicator Kriging for Analyzing Prices in the Real Estate Market

2016 ◽  
Vol 24 (4) ◽  
pp. 5-15
Author(s):  
Katarzyna Kobylińska ◽  
Radosław Cellmer
Keyword(s):  
Real Estate ◽  
Spatial Information ◽  
Real Estate Market ◽  
Indicator Kriging ◽  
Geostatistical Simulation ◽  
The Real ◽  
The Real Estate ◽  
Geostatistical Methods ◽  
Transaction Prices ◽  
The Real Estate Market

Abstract The patterns and relations between real estate prices and the factors which shape them can be presented, among others, in the form of traditional statistical models, as well as by means of geostatistical methods. In the case of research involving the diagnosis and prediction of transaction prices, the key role is played by the spatial aspect, hence the particular significance of geostatistical methods using spatial information. The main goal of the conducted research is to determine the probability of the occurrence of a price in a given location in space by means of geostatistical simulation - indicator kriging. Indicator kriging does not use the entirety of information included in a dataset, and can, therefore, be useful in situations when the assumptions involving the spatial stationarity of the examined phenomenon are not fulfilled by an entire dataset, but are fulfilled by a certain part of the set. The maps of the probability with which a regionalized variable (price) takes on particular values, limited by arbitrarily selected cutoff values, were prepared by means of indicator kriging. An alternative approach to the preparation of price probability maps is the determination of the spatial distribution of areas in which, with the assumed probability, the value of the price falls within the predetermined ranges. The paper presents both the essence as well as a theoretical description of the geostatistical simulation of a transaction on the real estate market, as well as the results of an experiment involving the transaction prices of real properties located in the north-western part of the city of Olsztyn. The result of the research is a set of virtual information about the places in which the transactions have occurred and about the prices of real estate, constituting a reflection of the market processes which may take place in the near future.

scholarly journals Search For Dissimilarity Factors For Nominally Indiscernible Facilities

2015 ◽  
Vol 23 (3) ◽  
pp. 65-72
Author(s):  
Jacek Zyga
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Sufficient Knowledge ◽  
Factors Influencing ◽  
The Real Estate Market ◽  
Data Search ◽  
Valuation Process

Abstract The similarity between premises, statutorily defined as the comparability of the compiled objects, is, in practice, identified by the statement of identity or the proximity of evaluation of the selected features describing the complied objects. Independent of the nature of these features (qualitative or quantitative), as well as of the method of identifying the proximity of their prices, the quest process for similar premises ends in the compilation of these premises into a group, which continues to remain inconsistent to some extent. The inevitable heterogeneity of the prices of premises summarized in this way leads to the suspicion that other features which had not been taken into account during the current stages of analysis exist. The identification of these features can significantly improve the quality of the valuation process based on the selected premises. The presented article discusses a method of identifying the plausible number of indiscernible factors influencing the differentiation of unitary prices in an analyzed set of premises, in the event when the collected information on these premises does not provide sufficient knowledge on the reasons behind such a differentiation. The result of the performed research can, in practice, be applied to program the procedures for the data search, and hence reduce the costs related to the acquisition of information on the premises (e.g. from the real estate market).

Measuring behavioural biases affecting real estate investment decisions in India: using IRT

2018 ◽  
Vol 11 (4) ◽  
pp. 648-668 ◽  
Author(s):  
Richa Pandey ◽  
V. Mary Jessica
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Psychometric Test ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Level Of Agreement

Purpose This study aims to investigate the behavioural biases influencing the real estate market investing decisions of normal non-professional investors in India. Design/methodology/approach As the study involves the behavioural data with polytomous response format, psychometric test- graded response model (IRT approach) was used for the study with the help of STATA 14. Multi-stage stratified sampling was used to collect a sample of 560 respondents. The study used a 14-item scale representing behavioural biases derived from two broad behavioural theories, i.e. heuristics and prospect theories. Sample characteristics were checked using SPSS 20. Pre-required assumptions for IRT (i.e. local independence and unidimensionality) were tested by CFA using AMOS 20. Findings Five items, four of which belong to heuristics (anchoring – 2, representativeness – 1 and availability bias – 1) and one belong to prospect theory (regret aversion) are sufficient to measure the behavioural attitude of real estate investors in the Indian scenario. Item discrimination ai ranged from 0.95 to 1.52 (average value 1.29), showing moderate discrimination power of the items. The items have done a pretty good job of assessing the lower level of agreement. For the higher level of agreement, the scale came out to be less precise, with less information and higher standard error of measurement. Research limitations/implications As the behavioural biases are often false, the study suggests the investors not to repeat these nasty biases to improve investment strategies. As they are shared and not easily changeable, understanding these biases may also help them in beating the market by acting as “noise traders”. Practical implications The traditional price index is incomplete in some essential respects. The inclusion of these behavioural biases into the construction of price index will greatly improve the traditional price index, policymakers should seriously think about it. Social implications Shelter is one of the basic needs; a dwelling unit is needed for one to stay in, develop and contribute to economy and society. If investors try to minimise these biases and policymakers keep a track of these while making strategies, mispricing in this sector can be controlled to some extent, which will ultimately help in the well-being of society. Originality/value This study contributes to the limited research by investigating the behavioural biases influencing the real estate market investment decisions of normal non-professional investors. It contributes to the lacking academe on real estate market in India. The study has used a psychometric test, i.e. the item response theory, for evaluating the quality of the items.

Influence of the Indoor Environment Quality on the Market Value of the Buildings

2014 ◽  
Vol 1041 ◽  
pp. 358-361
Author(s):  
Jan Pašek
Keyword(s):  
Real Estate ◽  
Indoor Environment ◽  
Market Value ◽  
Energy Performance ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Environment Quality ◽  
The Real Estate Market

The modern buildings are becoming more and more different from the traditional buildings, especially regarding their parameters of the indoor environment and low energy performance. For this reason, the real estate market has been looking for new criteria to estimate their market value and to distinguish them one from another. As they are trying to find the most objective parameters for establishing the market value of the buildings on the real estate market their attention focuses also on the quality of the indoor environment. The real estate market perceives a building with high quality of the indoor environment traditionally in the context of the technical, economic and energetic parameters but with higher and higher emphasis also put on social and environmental connections [1,2]. This paper is focused on the analysis of how much the quality of the indoor environment is taken into account in the process of the market valuation of the buildings in modern context.

Sign in / Sign up

Export Citation Format

Share Document