House price changes and idiosyncratic risk: the impact of property characteristics

Steven C Bourassa, Donald R Haurin, Jessica L Haurin, Martin Hoesli, Jian Sun

Research output: Contribution to journalArticle

29 Citations (Scopus)

Abstract

Although 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 three theories for guidance, one related to the optimal search strategy for sellers of atypical dwellings, another focusing on the bargaining process between a seller and potential buyers and the third relying on the concept of land leverage. 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.

Original languageEnglish
Pages (from-to)259-278
Number of pages20
JournalReal Estate Economics
Volume37
Issue number2
Early online date27 Apr 2009
DOIs
Publication statusPublished - 2009

Keywords

  • existing homes
  • market
  • time
  • appreciation
  • portfolio
  • dynamics
  • levergae
  • income
  • land

Cite this

House price changes and idiosyncratic risk : the impact of property characteristics. / Bourassa, Steven C; Haurin, Donald R ; Haurin, Jessica L; Hoesli, Martin; Sun, Jian.

In: Real Estate Economics, Vol. 37, No. 2, 2009, p. 259-278.

Research output: Contribution to journalArticle

Bourassa, Steven C ; Haurin, Donald R ; Haurin, Jessica L ; Hoesli, Martin ; Sun, Jian. / House price changes and idiosyncratic risk : the impact of property characteristics. In: Real Estate Economics. 2009 ; Vol. 37, No. 2. pp. 259-278.
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