Implicit house prices: variation over time and space

Abstract

This paper is concerned with implicit prices of housing characteristics based on asking price. The paper employs a large database from the Spanish housing market with models generated to explain how the pricing of attributes varies by region and how variation over time impacts on explanatory power. Attribute values are shown to be stable among regions but weights change with time suggesting that the perception of attribute values in asking price formation varies across the housing market cycle. It is shown that clustering by time tends to give higher parameter values and places more relevance on neighbourhood values.