No abstract

With the assertion that most empirical studies are underpinned by a theory, this study aims to presents the theoretical underpinnings of sentiment analysis in the housing market. It discussed four main theories namely: the behavioral finance theory, the bubbles theory, the theory of irrational exuberance and the theory of noise traders. To the best of the authors knowledge, this overview is the first in recent past to discuss the theoretical foundations of sentiment analysis in relation to housing prices. The study contributes to the extant literature in the field through the development of theoretical framework and the identification of new research gaps for future research. It has theoretical relevance to researchers and students in the finance fraternity who are beset with or struggling to identify the most appropriate finance theories that underpins their study in real estate sentiment analysis.

This study systematically review literature on the relationship between sentiment measurement and house prices in the contemporarily from 2012 to 2020, using a systematic review methodology. It identified news media, google trends, twitter and the stock market sentiment indexes as the nascent sentiment index quantification in the real estate market. And each according to literature has a link with house prices usually fueling price. The study again discovered new empirical and theoretical research opportunities in the field for future studies. To the best of the authors knowledge this is the first review work in recent past to synthesize the approaches to sentiment measurement and house prices in the contemporarily. The study makes contribution to the scanty extant literature in the real estate sentiment fraternity and would be beneficial to academics, policy makers and investors who are interested in sentiment analysis in the housing market.