Testing the Waters: A Spatial Econometric Pricing Model of Different Waterfront Views

David Wyman, Norman Hutchison, Piyush Tiwari

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    9 Citations (Scopus)


    This study contrasts the pricing of waterfront view amenities in a South Carolina lakefront community between the bubble and the post-bubble phases of the real estate cycle. Testing for spatial autocorrelation reveals the asymmetrical operation of spatial processes between the two periods. We find that empirical results for quality of view, view aspect orientation, and origin of buyer are affected by the recent recession. Specifically, prices for non-premium view properties suffer disproportionately. These results are confirmed by the construction of a spatial error model that provides an improved fit compared to a standard OLS spatial model.
    Original languageEnglish
    Pages (from-to)363-382
    Number of pages20
    JournalJournal of Real Estate Research
    Issue number3
    Publication statusPublished - Jul 2014



    • waterfront development
    • econometrics
    • CAPM
    • recessions

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