Tracking Home-Owners’ Sentiments: Subjective Indices and Convergent Validity

Sofie R. Waltl; Anthony Lepinteur

doi:10.1007/s11146-023-09949-w

Tracking Home-Owners’ Sentiments: Subjective Indices and Convergent Validity

Sofie R. Waltl, Anthony Lepinteur

Urban Development & Mobility

Research output: Contribution to journal › Article › peer-review

Abstract

Surveys regularly ask home-owners to guess what their property might be worth in the current housing market. We develop suitable statistical techniques to construct hedonic and repeat-sales style house price indices from these owner-estimated values (OEVs). The resulting series are then linked to a large set of quality-adjusted residential property price indices estimated from transaction data allowing us to perform a variety of convergent validity tests. Based on results for 20 countries, several decades and different OEV elicitation techniques, we conclude that the “wisdom of the home-owner crowd” is sufficient to study objective house price dynamics. Yet, surveys fail to accurately measure house price levels.

Original language	English
Journal	Journal of Real Estate Finance and Economics
DOIs	https://doi.org/10.1007/s11146-023-09949-w
Publication status	Published - 22 Apr 2023

Bibliographical note

Funding Information:
We gratefully acknowledge funding through the FNR Luxembourg National Research Fund, CORE Grant No. 3886 (ASSESS). Open access funding is provided by Vienna University of Economics and Business (WU).

Publisher Copyright:
© 2023, The Author(s).

Keywords

housing markets
subjective data
convergent validity
house price indices

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10.1007/s11146-023-09949-w

Cite this

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Tracking Home-Owners’ Sentiments: Subjective Indices and Convergent Validity

Abstract

Bibliographical note

Keywords

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