A Housing Price Index with the Improvement-Value Adjusted Repeated-Sales (IVARS) Method

Edward Chung Yim Yiu, K. Cheung
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引用次数: 2

Abstract

Article Classification: Research Paper (Construction or testing of a model or framework).

Purpose: The repeat sales house price index has been widely used to measure house price movements on the assumption that the quality of properties does not change over time. This study aims to develop a novel improvement-value adjusted repeat sales (IVARS) house price index to remedy the bias due to the constant-quality assumption.

Design/Methodology/Approach: This study compares the performance of the IVARS model with the traditional hedonic price model and the repeat sales model by using half a million repeated sales pairs of housing transactions in the Auckland Region of New Zealand, and by a simulation approach.

Findings: The results demonstrate that using the information on improvement values from mass appraisal can significantly mitigate the time-varying attribute bias. Simulation analysis further reveals that if the improvement work done is not considered, the repeat sales house price index may be overestimated by 2.7% per annum. The more quality enhancement a property has, the more likely it is that the property will be resold.

Originality: The novel IVARS index can help gauge house price movements with housing quality changes.

Practical Implications: This novel index may have the potential to enable the inclusion of home condition reporting in property value assessments prior to listing open market sales.
基于改进价值调整重复销售(IVARS)方法的房价指数
文章分类:研究论文(模型或框架的构建或测试)。目的:重复销售房价指数已被广泛用于衡量房价变动的假设,物业的质量不随时间而变化。本研究旨在建立一种新的改良价值调整的重复销售(IVARS)房价指数,以弥补因质量不变假设而造成的偏差。设计/方法/方法:本研究以新西兰奥克兰地区50万对房屋交易的重复销售为例,采用模拟方法,比较了IVARS模型与传统的快乐价格模型和重复销售模型的性能。结果表明:利用质量评价的改进值信息可以显著减轻时变属性偏差。仿真分析进一步表明,如果不考虑改善工作,重复销售房价指数可能被高估2.7% /年。物业的品质提升得越多,转售的可能性就越大。独创性:新颖的IVARS指数可以帮助衡量房价变动与住房质量的变化。实际意义:这个新指数有可能在公开市场销售上市前,将房屋状况报告纳入物业价值评估。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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