Natalya Bikmetova, Geoffrey K. Turnbull, Velma Zahirovic-Herbert
{"title":"Does Bankruptcy Identify a Type Of Real Estate Agent or a Stress-Induced Change in Performance?","authors":"Natalya Bikmetova, Geoffrey K. Turnbull, Velma Zahirovic-Herbert","doi":"10.1007/s11146-024-09984-1","DOIUrl":"https://doi.org/10.1007/s11146-024-09984-1","url":null,"abstract":"<p>Real estate agent experience, characteristics, selling strategies, and the structure of incentives affect sales performance. This paper also considers how stressful events in private life, like bankruptcy and criminal records, affect productivity. The empirical approach accounts for the simultaneity of price and liquidity in search markets. Full sample and repeat sales analyses sort out the extent to which these events identify different types of agents versus temporary changes in behavior as well as specific responses in terms of choice of clients versus how those clients are served. The analysis pays particular attention to differences in listing and selling agents. Bankruptcy and crime reports are different types of events and have different effects on agents. The results indicate that bankruptcy (or crime report) signals a certain type of agent with particular business practices who also change their behavior during temporary periods of stress.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"25 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140598468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Two-worker Households, Decentralized Employment, and Residential Segregation","authors":"Kuzey Yilmaz","doi":"10.1007/s11146-024-09985-0","DOIUrl":"https://doi.org/10.1007/s11146-024-09985-0","url":null,"abstract":"<p>The last century was marked by a remarkable improvement in the economic position of women, as reflected in higher labor force participation and wages. This paper extends the Hybrid Tiebout models of residential choice to allow for two-worker households. Our model incorporates both residential choice and labor market choices of households simultaneously and, thus, gives us a unique opportunity to study the impact of changes in the labor market conditions for workers on residential segregation. We develop a general equilibrium model of residential choice with decentralized workplaces in which households face a trade-off among accessibility, space and a public good (education). Education is financed through property taxes, which are determined by majority voting. The quality of education is determined by the spending and the peer group effects. The model is interesting in the sense that (i) households consider the work locations of both male and female working members of the household while making residential choice decisions; (ii) the presence of decentralized workplaces offers an alternative job location to workers; and (iii) the endogenous labor supply decisions for workers. We find that the increase in educational attainment for women and the changes in wages for men and women have had a substantial impact on the spatial distribution of households across metropolitan areas and hence, segregation by income.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"300 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140598696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effects of Capital Controls on Housing Prices","authors":"Yang Zhou","doi":"10.1007/s11146-024-09983-2","DOIUrl":"https://doi.org/10.1007/s11146-024-09983-2","url":null,"abstract":"<p>Policymakers increasingly use capital control policies (i.e., capital flow management) to manage capital flows. However, whether the implementation of such policies can effectively affect housing prices and to what extent is less discussed. In this paper, I study the effects of four types of granular capital control policies on housing prices using a large cross-country panel of 53 economies from 1995 to 2017. I find that the estimated effects of capital controls are distinct for different capital flow types and flow directions, but all capital control inflow indices appear to reduce housing prices in the long-run. Additionally, I find that capital controls have asymmetric effects on housing prices for advanced economies and emerging markets. The negative effects of capital controls on housing prices are mainly driven by pre-crisis subsample, which means capital controls have been in effect several times before the Global Financial Crisis. I also estimate the effects for boom and slump periods respectively and find that capital control policies are implemented in an acyclical way. Since there exists endogeneity for capital control on real estate transactions, I further use IPWRA method to rebalance capital control actions and find that IPWRA estimators can weaken the negative effects on housing prices, and the attenuation effects can be attributed to endogenous factors.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"70 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140598367","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of Wildfires on Mortgage Pricing: Evidence from Portugal","authors":"Laura Götz, Ferdinand Mager, Joachim Zietz","doi":"10.1007/s11146-024-09982-3","DOIUrl":"https://doi.org/10.1007/s11146-024-09982-3","url":null,"abstract":"<p>In 2017, parts of Portugal experienced unprecedented wildfires. We use these as a natural experiment to examine the extent to which banks operating in Portugal accounted for this exogenous environmental shock in their mortgage origination conditions. We employ a diff-in-diff framework on granular securitized mortgage data, which have not been used to explore the impact of natural disasters. Our results show that banks reacted to the wildfire disaster by charging a premium on interest margins. This premium is less visible in areas close to the wildfires than in wider geographical areas around the fires. We find the risk premium to be most pronounced for borrowers with lower incomes. For this group, the risk premium amounts to 22 bps compared to 13 bps for the average borrower.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"33 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140044245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"All That Glitters is Not Gold: Examining the Negative Impact of Real Estate Value on Companies' Market Competitiveness","authors":"Fangzhi Liang, G. Tian, Zhihua Wei, Aimin Zeng","doi":"10.1007/s11146-024-09981-4","DOIUrl":"https://doi.org/10.1007/s11146-024-09981-4","url":null,"abstract":"","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"250 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140428155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Local Gaussian Process Regression Approach, to Mass Appraisal of Residential Properties","authors":"Jacob Dearmon, Tony E. Smith","doi":"10.1007/s11146-024-09980-5","DOIUrl":"https://doi.org/10.1007/s11146-024-09980-5","url":null,"abstract":"<p>Mass appraisal of single-family homes is now possible using scalable versions of Gaussian process regression. However, it is here shown that the valuation accuracy of such models tends to suffer for higher priced properties where samples are thin. To remedy this, we turn to the industry standard practice of identifying small sets of comparable properties (comps) using rules loosely based on assessor methods. By using a real-world empirical dataset built on a decade’s worth of Assessor database backups, it is shown that this combination of domain expertise with machine learning improves predicted appraisals in a significant way. As part of this analysis, we also introduce and discuss a novel metric, average comp quality, for evaluating the predictive effectiveness of alternative comp sets.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"2015 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139977264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effects of Conventional and Unconventional Monetary Policy Shocks on US REITs Moments: Evidence from VARs with Functional Shocks","authors":"","doi":"10.1007/s11146-024-09978-z","DOIUrl":"https://doi.org/10.1007/s11146-024-09978-z","url":null,"abstract":"<h3>Abstract</h3> <p>We use a vector autoregressive model with functional shocks, capturing the shift of the entire term structure of interest rates on monetary policy announcement dates, to empirically evaluate the effects of conventional and unconventional monetary policy decisions on the Real Estate Investment Trusts (REITs) markets of the United States (US). Using 5-min interval intraday data, we analyze not only the impact on REITs returns, but also its realized variance (RV), realized jumps (RJ), realized skewness (RSK), and realized kurtosis (RKU) over the daily period of September 2008 to June 2021. While the effects of conventional monetary policy shocks on the moments of REITs returns tend to conform with economic theories, the same is not necessarily the case with unconventional monetary policy shocks. In addition, though monetary policy shocks have the most persistent and strongest effects on RJ, the extreme behaviour of the REITs market is also observed through RSK and RKU. Moreover, when we look into 10 REITs sectors, there is indeed heterogeneity in terms of the strength of the effect, but not so much in terms of the sign of responses of the various moments compared to the overall market. Our results have important implications for REITs market participants, given its exponential growth as an asset class.</p>","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"90 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139919597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Credit Tightening and Housing Prices: Empirical Research on the Channel of the Housing Supply Side","authors":"Bingtao Zhang, Xiaoli Wan","doi":"10.1007/s11146-023-09974-9","DOIUrl":"https://doi.org/10.1007/s11146-023-09974-9","url":null,"abstract":"","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"12 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139776163","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Credit Tightening and Housing Prices: Empirical Research on the Channel of the Housing Supply Side","authors":"Bingtao Zhang, Xiaoli Wan","doi":"10.1007/s11146-023-09974-9","DOIUrl":"https://doi.org/10.1007/s11146-023-09974-9","url":null,"abstract":"","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"176 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139835983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Investing in ESG Pay Off? Evidence from REITs","authors":"Ryan G. Chacon, Zifeng Feng, Zhonghua Wu","doi":"10.1007/s11146-024-09979-y","DOIUrl":"https://doi.org/10.1007/s11146-024-09979-y","url":null,"abstract":"","PeriodicalId":22891,"journal":{"name":"The Journal of Real Estate Finance and Economics","volume":"86 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139839492","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}