Working Paper: NBER ID: w2393
Authors: Karl E. Case; Robert J. Shiller
Abstract: This paper uses data on nearly a million homes sold in four metropolitan areas -- Atlanta, Chicago, Dallas and San Francisco -- to construct quarterly indexes of existing home prices between 1970 and 1986. We propose and apply a new method of constructing such indexes which we call the weighted repeat sales method (WRS). We believe the results give an accurate picture of the actual rate of appreciation in home prices in the four cities. The paper explains the construction of the index, discusses the results and compares them with the National Association of Realtors data on the median price of existing single family homes for the period 1981 - 1986.
Keywords: Home Prices; Real Estate; Economic Analysis
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| housing price appreciation (R31) | expectations of home buyers and sellers (L85) |
| WRS method (C59) | measure of home price appreciation (R31) |
| home price appreciation (R31) | national saving (D14) |
| Dallas home prices (R31) | real home price appreciation (R31) |
| San Francisco home prices (R31) | real home price appreciation (R31) |
| Atlanta home prices (R31) | real home price appreciation (R31) |
| Chicago home prices (R31) | real home price appreciation (R31) |