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

David Wyman, Norman Hutchison, Piyush Tiwari

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

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
Volume36
Issue number3
Publication statusPublished - Jul 2014

Keywords

  • waterfront development
  • econometrics
  • CAPM
  • recessions

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