Value Of Residential Real Estate Research Articles

Assessment of the Impact of Migration Processes on Pricing in the Residential Real Estate Market in the Russian Federation

The dynamics of the housing construction industry can be seen as an indicator of the level of social and economic development of the country. The attractiveness of residential real estate is largely determined by price availability for the population. However, it is important to consider demographic factors. Therefore, the study assessed the effects of migration, along with parameters such as salary dynamics, mortgage lending and construction volumes of the Russian Federation. The purpose of the study is to justify the importance of migration dynamics to change the value of residential real estate. The subject of study is the existence of dependence of migration processes and pricing dynamics taking into account additional parameters of the country’s economy. The object of the study is pricing in the residential real estate market in Russia. Research methods are vector autoregression models (standard and Bayesian ones). Monthly data of official statistics for Russia for 2011–2021 as well as scientific articles and published studies of employees of the Bank of Russia were used as the information base. The initial hypothesis of the study is that the factor of migration significantly affects the final indicator of the cost of housing. The analysis made it possible to determine the importance of factors that have a sustainable long-term impact on the dynamics of prices in the residential real estate market.

The Impact of Mortgage Rates on the Value of Residential Real Estate

The article discusses the regularities of the influence of the parameters of mortgage loans on the cost of residential real estate. In the context of the widespread use of macroeconomic mechanisms by the state for regulating the economy, such as the regulation of the key rate, and the development of state programs for subsidizing mortgages, identifying such patterns is a rather urgent task. The main parameters of mortgage loans that are important for borrowers and affect the cost of residential real estate are analyzed; the interest rate on mortgage loans is identified as the main parameter. The factors influencing the level of interest rates are analyzed. A methodology is proposed and, on its basis, the calculation of indicators characterizing the degree of influence of changes in interest rates on the cost of residential real estate is made.

Econometric Models for the Estimation of the Commercial Value of Residential Real Estate Objects in Latvia

Real estate market formation in Latvia occurs in the conditions of practical absence of a single system of methodological approaches to real estate estimation adapted for the Latvian conditions. In the article it is proved that along with individual estimation it is possible to use methods of mass appraisal of the commercial value of the real estate, constructed on the basis of econometric models. Application of such models will allow us to receive rather precise, authentic estimation of the commercial value of residential real estate in the conditions of dynamics of the Latvian market of real estate.

Assessment of the Impact of Public Transport Accessibility on the Value of Urban Residential Real Estate

Currently, analysis of the impact of public transport on real estate and its value is widely demanded in the world. The analysis is used to plan investments in public transport and the efficiency of public transport networks. In Russia, such studies have been carried out mainly in the framework of the evaluation of specific properties, which does not make it possible to macroanalyze the urban public transport environment and compare them with each other. The aim of the work is to study the influence of the proximity of public transport infrastructure on the cost of urban residential real estate, to determine the average value of such an impact for Yekaterinburg. In this study, we intend to confirm the hypothesis about different influence of the proximity of a public transport stop on the cost of housing, taking into account the different set of attributes that characterize it. The calculations were carried out using the analysis of the supply of the real estate market, carried out with the method of multiple regression, simultaneously with the geo-positioning of real estate units on the map to calculate the distance of each object to the nearest public transport stop of a certain type. Based on the results of the calculations, a global tendency towards a higher cost of the properties that are close to tram stops or metro stations in Yekaterinburg is confirmed, and the share of the value of a property generated by the proximity of a public transport stop was calculated. The authors confirmed the hypothesis about varying sensitivity of residential real estate to the proximity of public transport stops. Newer homes have lower sensitivity to proximity to public transport stops than older ones. The obtained empirical evidence of the influence of public transport infrastructure on the value of residential real estate demonstrates the most significant contribution to the value of a real estate object, the proximity to the metro station in Yekaterinburg (3.0 – 12.0%). The tram infrastructure showed a slightly lower impact on the total cost of the facility (3.2 – 8.8%). The revealed interdependencies make it possible to apply the obtained data to forecasting the growth of the taxable base for property tax during the construction of new transport lines.

Assessment of changes in the market value of residential real estate in the area of the commissioned transport interchange of the urban toll road

The purpose of this research is to assess the impact of the commissioned toll road running through the city’s residential areas on the market value of residential real estate. The article presents a review of non-traditional methods for assessing real estate value, mainly in foreign publications. The Western High-Speed Diameter (WHSD) is the most significant transport and infrastructure project of the current decade for St. Petersburg. The most inaccessible part of the city on Vasilievsky Island was analyzed, as the example of new and secondary real estate value changes, were examined from August 2015 to December 2017, by the time when the new transport interchange of WHSD in the western part of the island was constructed and put into commission.  For the study, the authors used the data of the Real Estate Bulletin of St. Petersburg at the end of 2015 and 2017, the data of the cadastral assessment of residential real estate of St. Petersburg of 01.01.2015 and 01.01.2018. Main research method is the study of two-dimensional and conditional distributions of random values of bid prices and cadastral values, which allows obtaining estimates of the market value of the real estate that has passed cadastral registration, and estimates of growth rates.  The comparison of prices of offers with cadastral values applied in the article, with a simple and natural speculation of logarithmically normal distribution, allows us to propose a method of assessing the market  value for any property, even if the information about it is not available in the market data. The obtained numerical results showed a rise in the cost of a significant part of the mass-market for the study period up to 18% without discount on the auction, and up to 9% taking into account the discount on the auction. It turned out to be slightly higher than the general change in the prices of proposals that can be found in advertising publications. A significant change (from 50% to 73%) was found in business-class properties, located in the area with significantly changed species characteristics and improved transport accessibility, in the immediate vicinity of the exit from WHSD.  The results, indicating the growth of market value, allowed us to make a general conclusion about the changes in the attractiveness of the area for different segments of the population of the city: both for the mobile middle class, focused on the mass-market, and for buyers of the premium segment, having increased requirements for the real estate. The authors believe that the growth of the market value of real estate in the area of transport interchanges of modern infrastructure projects could be higher in other macroeconomic conditions. At present, the effective demand of the population is obviously not sufficient.  

Property as Rent

As fear of financial market turbulence reaches its most severe level since the lead up to the Great Recession in 2007, this article revisits the topic of real estate securitization while broaching a broader concern with the inadequacy of how property theory has reckoned with major changes in the post-war economy since the 1970s. To do so the article highlights a new form of securitization— of rental payments from single-family homes — that has been emerging in the United States since 2013. It discusses the new class of securities that such single family rental (SFR) payments support as one example of the economy’s ever shifting overreliance on debt-based forms of financial asset property more generally. The article situates real estate securitization in specific and financial asset property in general in relation to our reinvigorated debate in law about property as an in rem right to exclude versus a versus a bundle of social relations making democratic community possible. Arguing that neither side in the debate has been well equipped to account for financial asset property, the article makes a normative case against the renewed resort to securitization in the real estate market. Using SFR-backed securities as an example, it argues that we can better understand debt-based property derived from real estate value according to a long-standing conception in law and economics of property as a means of extracting economic rent from land. Neglected by recent theorists on all sides, this conception of property-as-rent dates to the origins of classical economic thought and remained highly influential for early institutional economists and their legal realist inheritors in the United States. Its distinguishing feature was an underlying idea of rent that concentrated attention on land control as a means of garnishing unearned revenue from production so as to inhibit rather than promote economic well being. As renewed debate in property theory has instead focused on other concerns, we have missed the key role that financial ownership claims on land’s scarcity value have continued to play in our actual economy, steadily re-directing income and investment from productive to speculative use since the 1970s. In pressing the case for the conception of property-as-rent, the article closes by drawing on a novel data set to disaggregate the relative share of land versus built structure values in the long-term composition of housing prices in the United States. By doing so, the article shows how contingent securitization is on extracting — and transforming into bondholder interest — rentierist scarcity premiums from land, which the data demonstrate to comprise much/most of the increasing value of residential real estate in the last half-century.

The Mathematical Model of Forecasting the Price Level in the Regional Market of Residential Real Estate

The purpose of this article is to develop a mathematical model for estimating the value of a real estate object, taking into account the trends in the residential real estate market using indicators of the object’s state and indicators of the real estate market. The real estate market is a complex mechanism that includes subjects, objects, processes and infrastructure. The real estate market has its own characteristics that distinguish it from the market of goods and services related to the duality of real estate, its special characteristics. Despite the high conservatism, there are certain innovative trends in the development of the residential real estate market (innovations in construction, architecture, services and marketing, logistics, customer focus). The article considers the residential real estate market as a complex socio-technical system, to predict the development of which it is advisable to use a combination of classical forecasting methods and soft computing or intelligent data processing methods. A forecast of the development of the residential real estate services market was made using foresight technologies (industry roadmap). The analysis was carried out and the main factors acting on the market were identified, and their influence on the development of market trends was determined. A mathematical model for predicting the value of residential real estate based on the theory of fuzzy sets has been developed.

МОДЕЛИРОВАНИЕ КАДАСТРОВОЙ СТОИМОСТИ ЖИЛОЙ НЕДВИЖИМОСТИ Г. ТОМСКА

Determination of the tax base and the transition to the calculation of the tax, on the property of individuals, based on the cadastral value of residential real estate in the Tomsk region will be carried out from 2020. In this connection, an analysis was made of the residential real estate market in the city of Tomsk, based on the results of which their cadastral value was modeled. Based on the modified cadastral value, the average amount of tax payments for owners of one-, two- and three-room apartments was predicted.

Availability of parks as a factor of affecting the value of residential real estate in the primary market

The factors whith influencing on the cost of residential real estate on the primary market are analyzed, in particular, the influence of distance to the nearest park and park area as one of the important factors influencing the attractiveness of residential complexes for potential buyers is researched.

The effect of conservation policy and varied open space on residential property values: A dynamic hedonic analysis

We investigate open space value in an ideal setting for a natural experiment between Riverside County, with an open space conservation policy, and neighboring San Bernardino County without the policy. With spatial econometrics, time series and spatial data, this study accounts for both spatial and temporal variation of open space values. The novelty of our paper is that we combine an investigation of the effect of open space proximity on residential property value with an analysis of the effect of endangered species habitat preservation policy distinguishing between types of open space (wild habitat for endangered species versus developed parks) in a two county study. We find that proximity to open space has a positive and statistically significant influence on increased value of residential real estate, with some distinction among type of open space between the counties. Conservation policy for open space with wild habitats contributes to increased value of this amenity in Riverside County.

Verification of the dependence of factors determining the market value of residential real estate at the stages of the life cycle

The paper reflects the results of the study of the dependence of factors that form the market value of residential real estate objects at the stages of life cycle on the example of the residential real estate market in the city of Krasnoyarsk. It was determined that the location and lifetime of facilities are the key factors in the formation of the market value of residential property. Based on the conducted economic and statistical analysis, it is proved that the importance of the residential object location can suppress the influence of a high degree of depreciation of the building, thereby increasing the market value of residential property in it. It is justified in the work that the value of a location, being a qualitative characteristic of residential real estate, involves the development of quantitative approaches to its measuring and valuating in order to solve theoretical and methodological problems of management and development of housing construction.

An examination of client influence on residential property valuation in

The study looked at how consumer behaviour affected the value of residential real estate in Nigeria's Edo State capital of Benin. Self-completed questionnaires were employed in the study to gather pertinent information. Professionals working for surveying and valuation companies in the city of Benin filled out 59 successfully completed questionnaires. To support the hypothesis, the data were analysed using the chi-square test method and presented as frequency and percentage tables. The study discovered that although there have been cases in Benin of customers trying to sway assessment reports, these occurrences are negligible since appraisers don't let such clients' influence have an impact on their ratings. To avoid effects such as overvaluation, undervaluation, misvaluation, professional misconduct, and legal and litigation cases on the valuation reports, appraisers are urged to continue resisting client influence in order to produce valuation reports that serve as strong market evidence for additional reference.

The use of hedonic pricing method to determine the parameters affecting residential real estate prices

Owning residential real estate is very important not only for satisfying the need for shelter—a fundamental human right—but also it is considered as a good investment. It is true that real estates are heterogeneous because of their various structural, positional characteristics, as well as their local conditions, all of which affect the value of real estates. These are among the reasons for undertaking studies to determine the degree of importance and the parameters affecting the value of residential real estate. By using one of the widely used methods, hedonic pricing method (HPM), this study seeks to determine the structural and environmental characteristics that are effective on residential real estate sale prices in Artvin city center. With the highest number of residential real estate sales in 2015, the Orta neighborhood, in the Central District of Artvin, was chosen as the study area. The relationship between 18 parameters were analyzed, on the basis of the actual sales value, acquired from the purchasers of 81 residential properties in this neighborhood and taking into account the structure of Artvin city. In this context, using the functional form of HPM, semi-logarithmic model was generated. When examining the model, it was determined that four out of the supposedly effective 18 parameters were statistically significant and they were able to explain 84% of the variations on price. Moreover, the parameters of floor area, age, distance to primary school, and distance to city center were effective on the sales prices in the semi-logarithmic model. In addition, the results revealed that the structural characteristics are more influential on real estate prices than the environmental and accessibility features within Orta neighborhood in Artvin.

Tossed and turned: Wealth dynamics of U.S. households 2007-2009

For many years, the cross-sectional Survey of Consumer Finances (SCF) has shown relatively weak or inconsistent changes in the shape of the distribution of net worth, despite many shifts in income and other economic factors. In 2009, households that had taken part in the 2007 SCF were re-interviewed to obtain information on the changes in their financial condition over the period of the intervening financial crisis. Looked at as a second cross section, the 2009 data show a pattern of wealth distribution very similar in shape to what had been seen in the earlier cross sections. Between the two years, however, there was considerable variation in the relative positions of households within the wealth distribution. This paper presents data on the changed situation of households and it decomposes the observed wealth changes in terms of underlying portfolio shifts. It is generally recognized that changes in the value of residential real estate, corporate equities and private businesses were important sources of wealth losses. Although the data presented here confirm that picture, they also show a great deal of heterogeneity below the aggregate level. The observed stability of the pseudo-cross-sectional wealth shares in the panel despite the underlying turmoil is largely a consequence of changes in values of businesses and equities among comparatively wealthy households offsetting changes in the value of housing assets among other households.

Effects of urban renewal on non-subsidised property owners: evidence from East Germany

Urban renewal programmes intervene in the housing market by offering different kinds of subsidies that support the improvement of public spaces or selective demolition. The central aim of this paper is to disentangle the economic impact of these subsidies on property owners and investors by exploring the value of residential real estate. There is limited knowledge as to which type of owners benefit from such actions and whether they even benefit at all. One may expect that the indirect effects of a regime of regulation inspire more confidence in market recovery from the perspective of property owners. By using the theory of real options it is assumed that urban renewal raises the option premium of a property which in turn represents an opportunity to the owners to use and develop their property. This opportunity is based on expectations of higher revenues in the future. The hypothesis of an increasing option premium is explored using data from a large urban renewal programme in East Germany.

Appraisal of the Residential Real Estate in Latvia: The Case of Riga and Daugavpils

The real estate sector plays an important role for the real economy. Econometric modeling is successfully applied to mass appraisal of real estate, which is one of the most classical economic tasks. The paper shows the results of the use of three models for the appraisal of the commercial value of residential real estate in Latvia. The authors have chosen two biggest cities in Latvia, i.e., the capital of Latvia – Riga and the regional center – Daugavpils. The statistical analysis of the sales data for 2011-2012 has allowed distinguishing pricing factors of the residential real estate both at the regional level and at the level of a building and object of real estate. Modeling was conducted with the use of correlation and regression and cluster analyses. The additive and multiplicative models based on the regression equation and the model of the cluster analysis based on the method of parallel sectioning have been presented.

Understanding House Price Index Revisions

Residential house price indexes (HPI) are used for a large variety of macroeconomic and microeconomic research and policy purposes, as well as for automated valuation models. As is well known, these indexes are subject to substantial revisions in the months following the initial release, both because transaction data can be slow to come in, and as a consequence of the repeat sales methodology, which interpolates the effect of sales over the entire period since the house last changed hands. We study the properties of the revisions to the CoreLogic House Price Index. This index is used both by researchers and in the Financial Accounts of the United States to compute the value of residential real estate. We show that the magnitude of revisions to this index can be significant: At the national level, the ratio of standard deviation of monthly revisions to the growth rate of the index, relative to the standard deviation of the growth rate in the index, is 29%, which is comparable to the relative ratio for other macroeconomic series. The revisions are also economically significant and impact measures used by policymakers: Revisions over the first 12 releases of the index reduce estimates of the fraction of borrowers nationwide with negative equity by 4.3%, corresponding to 423,000 households. Lastly, we find that revisions are ex-ante predictable: Both past revisions and past house price appreciation are negatively correlated with future revisions.

The Effects of Noise Pollution Produced by Road Traffic of Naples Beltway on Residential Real Estate Values

Noise pollution generated by road traffic represents a damage factor for property values when sound pressure levels exceeds normal tolerability limit. In fact, noise emissions over the normal tolerability limit cause a real estate values reduction and lower marketability in terms of willingness to pay by traders. In this study the effects of noise pollution produced by road traffic of Naples Beltway on residential real estate values​​ for a central urban area have been evaluated. These economic effects were evaluated using an econometric analysis of property prices (Land Price Analysis) based on a hedonic price function built through a semiparametric additive model (Penalized SplineSemiparametric Method) and applied to a sample of defined residential real estate market of Naples. In line with indications provided by wide literature examined, for increase of an sound level unit (expressed in dB) it was verified that average depreciation percentage for real estate values ranges from 0,30% (diurnal emissions) to 0,33% (nocturnal emissions).

Analyzing Massive Data Sets: An Adaptive Fuzzy Neural Approach for Prediction, with a Real Estate Illustration

Drawing useful predictions from vast accumulations of data is becoming critical to the success of an enterprise. Organizations’ databases grow exponentially from transactions with external stakeholders in addition to their own internal activities. An important organizational computing issue is that, as they grow, the databases become potentially more valuable and also more difficult to analyze. One example is predicting the value of residential real estate based on past comparable sales transactions. This is critical to several important sectors of the US economy including the mortgage finance industry and local governments that collect property taxes. The common methodology for dealing with such property valuation is based on multiple regression, although this methodology has been found to be deficient. Data mining methods have been proposed and tested as an alternative, but the results are very mixed. This article introduces a novel approach for improving predictions using an adaptive, neuro-fuzzy inference model, and illustrates its application to real estate property price prediction through the use of comparable properties. Although neuro-fuzzy–based approaches have been found to be effective for classification and estimation in many fields, there is very little existing work that investigates their potential in a real estate context. In addition, this article addresses several common problems in existing studies, such as small sample size, lack of rigorous data sampling, and poor model validation and testing. Our model is tested with real sales data from the assessment office in a large US city. The results show that the neuro-fuzzy model is superior in all of the test scenarios. The article also discusses and refines a unique technique to defining comparable properties to improve accuracy. Test results show very promising potential for this technique in mass appraisal in real estate and similar contexts when used with the neuro-fuzzy model.

Construction and Analysis of Econometric Models for the Estimation of the Commercial Value of Objects of Residential Real Estate in Latvia

Real estate market formation in Latvia occurs in the conditions of practical absence of a single system of methodological approaches to real estate estimation adapted for the Latvian conditions. In the article below it is proved that along with individual estimation it is possible to use methods of mass appraisal of the commercial value of the real estate, constructed on the basis of econometric models. Application of such models will allow us to receive rather precise, authentic estimation of the commercial value of residential real estate in the conditions of dynamics of the Latvian market of real estate.