Testing House Price Index in the Brazilian Real Estate Market
Joe Akira Yoshino
Universidade de São Paulo - Department of Economics
July 11, 2010
In this paper, we evaluate the impacts of capital markets in housing prices of São Paulo City, which is the largest municipality in Brazil. The analysis covers the period from January 2001 to March 2008 and the method applied was based on the model of hedonic pricing. As expected, the conditions of housing financing showed positive correlation with property prices, while banking spreads showed the opposite effect. Some interesting results were obtained through the interaction between the stock market boom in Brazil and characteristics of the houses in the sample. It was found that in periods of positive performance at stock markets, many of the house’s characteristics loose importance in pricing, while the financing conditions become more important.
Number of Pages in PDF File: 12
Keywords: Hedonic Pricing Model, Stock Market, Real Estate Market
JEL Classification: C43, G12, O18working papers series
Date posted: September 11, 2010 ; Last revised: September 15, 2010
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