Can Google Trends Actually Improve Housing Market Forecasts?

29 Pages Posted: 17 Dec 2016 Last revised: 12 Nov 2018

Date Written: November 11, 2018

Abstract

We augment linear pricing models for the housing market commonly used in the literature with google trends data in order to assess whether or not crowd-sourced search query data can improve the forecasting ability of the models. We compare various performance measures of the augmented linear model's out-of-sample, one-step ahead, dynamic forecasts against a baseline version. We find that augmenting the models to take advantage of the availability of Google trend data does not improve the forecasting performance of the models.

Keywords: internet queries, Google Trends, forecasting, housing models

JEL Classification: R31, R21, C53

Suggested Citation

Limnios, Christopher and You, Hao, Can Google Trends Actually Improve Housing Market Forecasts? (November 11, 2018). Available at SSRN: https://ssrn.com/abstract=2886705 or http://dx.doi.org/10.2139/ssrn.2886705

Christopher Limnios (Contact Author)

Providence College ( email )

United States

Hao You

Providence College ( email )

United States

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