Measuring prices in resale housing markets in Canada: Evidence and implications

Hosios, Arthur J.; Pesando, James E.

doi:10.1016/s1051-1377(05)80015-4

Cited by 59 publications

(33 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Clayton (1994) and Meese and Wallace (1994), for example, both find that house values deviate from fundamental values in the short run, although the present-value relationship appears to hold in the long run. Hosios and Pesando (1991) and Case and Shiller (1989) find evidence that quality-adjusted house prices are serially correlated on a quarterly basis, which implies that future house prices are forecastable. Similarly, Linneman (1986) finds that portfolios of ''negative residual'' homes appreciate markedly faster than a random sample of homes in the residential market, in which the residuals are the error terms from a hedonic regression estimated at a given point in time.…”

Section: A Brief Review Of Prior Studies On the Efficiency Of Thementioning

confidence: 99%

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Rosenthal

1999

Review of Economics and Statistics

View full text Add to dashboard Cite

-Present value studies of asset market efficiency are controversial because they compare asset prices to unobserved discounted streams of future rents. As an alternative, if housing markets are efficient, then the price of residential capital or buildings should satisfy the following two conditions: (i) deviations between new building prices and construction costs should disappear faster than construction lags and have no effect on construction, and (ii) temporary building price shocks should dissipate at a similar rate for different vintage buildings. Results from an errorcorrection model support both hypotheses for single-family housing in Vancouver, British Columbia. This implies that the implicit market for residential buildings is efficient and that any inefficiencies in the housing market must lie in the market for land itself.

show abstract

Section: A Brief Review Of Prior Studies On the Efficiency Of Thementioning

confidence: 99%

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Rosenthal

1999

Review of Economics and Statistics

View full text Add to dashboard Cite

show abstract

“…Hosios and Pesando (1991) Case and Shiller (1989) and Kuo (1996) do for the U.S. housing markets, Hosios and Pesando (1991) find some seasonality in the housing market of Toronto. Thus, the efficient market hypothesis is rejected for the housing market in Toronto as well.…”

Section: Literature Reviewmentioning

confidence: 89%

“…Two further studies considering the Canadian housing market are conducted by Hosios and Pesando (1991) as well as by Clayton (1998). Hosios and Pesando (1991) Case and Shiller (1989) and Kuo (1996) do for the U.S. housing markets, Hosios and Pesando (1991) find some seasonality in the housing market of Toronto.…”

Section: Literature Reviewmentioning

confidence: 99%

Further Evidence on the (In-) Efficiency of the U.S. Housing Market

Schindler

2010

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Terms of use: Documents in EconStor mayDownload this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10004.pdf Non-technical SummaryResearch strategy. In general, we can conclude that investors might be likely to earn excess returns by using past information in the U.S. housing market, in particular when standardized derivatives of the indices are traded on exchange markets. However, due to data limitations, the analysis does not conduct the tests based on prices and price changes in derivatives. This analysis would give further empirical evidence whether inefficiencies in the U.S. housing market are exploitable or whether they are incorporated into the pricing process of tradable products and are thus not exploitable by investors.-II - we apply technical trading strategies to test whether or not the inefficiencies can be exploited by investors earning excess returns. The empirical findings suggest that investors might be able to obtain excess returns from both autocorrelation-and moving average-based trading strategies compared to a buy-and-hold strategy. Das Wichtigste in Kürze

show abstract

“…It is not only the real estate markets in China that have been examined. There are also several studies on the housing markets of the United States, the United Kingdom, Canadian (Gau, 1984(Gau, , 1985Hosios and Pesando, 1991;Clayton, 1998;Schindler, 2014). However, the economist made reports with conflicting results on the sustainability and predictability of housing markets (Schindler, 2014).…”

Section: Introductionmentioning

confidence: 99%

Numerical Computation of the Fluctuations of Commercial Housing Prices and Disposable Incomes of Urban Residents Based on the VAR and LSE Models

Zhang¹,

Liu²

2015

J. of Software Engineering

View full text Add to dashboard Cite

To ensure the healthy development of the national real estate industry and explore the determinant of commercial housing prices in China, the correlation between fluctuations of commercial housing prices and disposable incomes of urban residents was analyzed and predicted with annual time series data based on Vector autoregressive (VAR) model. The study dealt with the bifactorial data and found positive correlations in both the empirical VAR model and the Least Squares Estimation (LSE) model. The Granger causality test and Cointegration tests were next carried out to verify the rationality of the empirical VAR model and its settings. The present study revealed that the urban resident disposable income was one of the crucial impact factors influencing the rising commercial housing prices. There exists a positive correlation or convergence relationship between the development trends of the commercial housing prices and the disposable incomes of urban residents on the basis of a fifteen years prediction by impulse response function. Finally, some comments and suggestions were put forward relevant to the corresponding policy adjustment and decision making of commercial housing market in view of the present empirical study.

show abstract

Measuring prices in resale housing markets in Canada: Evidence and implications

Cited by 59 publications

References 10 publications

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Further Evidence on the (In-) Efficiency of the U.S. Housing Market

Numerical Computation of the Fluctuations of Commercial Housing Prices and Disposable Incomes of Urban Residents Based on the VAR and LSE Models

Contact Info

Product

Resources

About