Intra-Metropolitan House Price Movements: An Analysis of Stockholm 1981-1993

Abstract

The present paper highlights the importance of house price index methodology and relevance of studying price indices within a metropolitan region. Two approaches based on hedonic approach have been compared. Though the results are inconclusive as to whether explicit time variable hedonic approach is superior to cross section hedonic approach or vice versa but there are evidences that would suggest that cross section approach is better. The results are compared with indices developed by other methodologies like improved repeat sales method and official methodology of SCB. The index obtained by us are very similar to others but the quarterly price increases as calculated by us lags the other two. This paper further tries to explain the intra-metropolitan price variations based on population , employ ment and tenureship trends. A ripple effect is also noticed where the prices in one zone leads the others .

Micro-Analysis of Price Spillover Effect among Regional Housing Submarkets in Korea: Evidence from the Seoul Metropolitan Area

“…This bubble effect is regarded as an important phenomenon that can predict the instability of the local housing market in the future [17]. The price transition between regions can be explained through the ripple effect [11,[18][19][20][21], price movements [22,23], spillover [24][25][26][27][28][29], and spatial volatility [30]. All these effects comprise a chain of spillover effects through which changes in housing prices in a specific country or region directly affect the housing markets in other neighboring countries or regions.…”

House Price Dynamics in Mumbai, 1989–1995

“…In the literature, numerous studies have developed aggregate constant quality house price indices at the national, regional, or city level (Abraham and Schauman, 1991;Haurin et al, 1991;Hosios and Pesando, 1991;Peek and Wilcox, 1991;Case and Schiller, 1987;Englund et al, 1996;Wigren, 1987;Tiwari and Turner, 1998). These indices explain household formation, housing demand and migration in order to evaluate the effects of local policies and events, and to examine housing market efficiency (Abraham and Hendershott, 1996;Gyourko and Voith, 1992;Case and Schiller, 1989;Guntermann and Smith, 1987;Hort, 1997;and Berg, 1997).…”

“…Despite being an economically declining city, Glasgow witnessed growth in house prices much higher than the national average during the period 1972-1983 because of various regional factors. Since then, very few articles have been written on local house price movements (for example, Tiwari and Turner, 1998;Archer et al, 1996;Gatzlaff et al, 1994). The reason has been lack of attention accorded to developing intra-metropolitan house price indices.…”