A Simple Repeat Sales House Price Index: Comparative Properties under Alternative Data Generation Processes

Estimating house price growth with repeat sales data: What’s the aim of the game?

Since the seminal work of M. Bailey, R. Muth, and H. Nourse (1963, J. Amer. Statist. Assoc. 58, 933–942), numerous articles have been written about repeat sales and other methods for constructing house price indices. Our justification for producing yet another paper on this subject is to reemphasize fundamentals. We focus on the basic building blocks—asking questions about what the underlying t...

Depreciation of housing capital, maintenance, and house price inflation: Estimates from a repeat sales model

The rate at which physical capital depreciates is fundamental to investment in the economy. Nevertheless, although housing capital accounts for one-third of the total capital stock, the rate at which housing capital depreciates has only rarely been directly estimated, in part because prior studies do not control for maintenance. For that same reason, widely publicized measures of house price ap...

House Price Index Methodologies

Index Revision, House Price Risk, and the Market for House Price Derivatives

It is widely recognized that options and futures markets for housing can reduce and manage the risks inherent in consumers’ large investments in housing equity. The integrity of such markets depends, however, upon the use of transparent and replicable benchmarks for house prices and settlement values. In the USA, a series of state and metropolitan indexes have been produced by a government agen...

Alternative Price Processes for Black - Scholes : Empirical