Repeat Sales House Price Index Methodology
36 Pages Posted: 9 Dec 2012 Last revised: 19 May 2018
Date Written: December 7, 2012
Abstract
We compare four traditional repeat sales indices to a recently developed autoregressive index that makes use of the repeat sales methodology but includes single sales and a location effect. Qualitative comparisons on statistical issues including the effect of gap time on sales, use of hedonic information, and treatment of single and repeat sales are addressed. Furthermore, predictive ability is incorporated as a quantitative metric into the analysis using data from US home sales in twenty metropolitan areas. The indices tend to track each other over time; however, the differences are substantial enough to be of interest, and we find that the autoregressive index performs best overall.
Keywords: repeat sales, time series, housing, index evaluation
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