House Price Changes and Idiosyncratic Risk: The Impact of Property Characteristics

Steven Bourassa, Donald Haurin, Jessica L. Haurin (), Martin Hoesli and Jian Sun ()
Additional contact information
Jessica L. Haurin: Center for Real Estate Massachusetts Institute of Technology
Jian Sun: School of Urban and Public Affairs, University of Louisville

FAME Research Paper Series from International Center for Financial Asset Management and Engineering

Abstract: While the average change in house prices is related to changes in fundamentals or perhaps market-wide bubbles, not all houses in a market appreciate at the same rate.The primary focus of our study is to investigate the reasons for these variations in price changes among houses within a market. We draw on two theories for guidance, one related to the optimal search strategy for sellers of atypical dwellings and the other focusing on the bargaining process between a seller and potential buyers. We hypothesize that houses will appreciate at different rates depending on the characteristics of the property and the change in the strength of the housing market. These hypotheses are supported using data from three New Zealand housing markets.

Keywords: Atypicality; Bargaining; Housing Risk; House Price Appreciation; Search Models (search for similar items in EconPapers)
JEL-codes: D83 R21 R31 (search for similar items in EconPapers)
Date: 2005-11
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: House Price Changes and Idiosyncratic Risk: The Impact of Property Characteristics (2009)
Working Paper: House Price Changes and Idiosyncratic Risk: The Impact of Property Characteristics (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:fam:rpseri:rp160

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