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

Waltl, Sofie R.; LEPINTEUR, Anthony

doi:10.1007/s11146-023-09949-w

Download

Article (Scientific journals)

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

Waltl, Sofie R.; LEPINTEUR, Anthony

2025 • In Journal of Real Estate Finance and Economics, 70 (4), p. 706 - 734

Peer Reviewed verified by ORBi

Permalink
https://hdl.handle.net/10993/66737

DOI
10.1007/s11146-023-09949-w

Files (1)Send to Details Statistics Bibliography Similar publications

Files

Full Text

s11146-023-09949-w.pdf

Publisher postprint (2.41 MB)

Download

All documents in ORBilu are protected by a user license.

Send to

RIS BibTex APA Chicago Permalink X Linkedin

Details

Keywords :

Convergent validity; House price indices; Housing markets; Subjective data; Accounting; Finance; Economics and Econometrics; Urban Studies

Abstract :

[en] 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.

Disciplines :

Special economic topics (health, labor, transportation...)

Author, co-author :

Waltl, Sofie R. ; Vienna University of Economics and Business, Vienna, Austria ; Luxembourg Institute of Socio-Economic Research (LISER), Esch-Sur-Alzette/Belval, Luxembourg

LEPINTEUR, Anthony ; University of Luxembourg > Faculty of Humanities, Education and Social Sciences (FHSE) > Department of Behavioural and Cognitive Sciences (DBCS) > Health and Behaviour

External co-authors :

yes

Language :

English

Title :

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

Publication date :

May 2025

Journal title :

Journal of Real Estate Finance and Economics

ISSN :

0895-5638

eISSN :

1573-045X

Publisher :

Springer

Volume :

Issue :

Pages :

706 - 734

Peer reviewed :

Peer Reviewed verified by ORBi

Additional URL :

https://link.springer.com/content/pdf/10.1007/s11146-023-09949-w.pdf

Funders :

Fonds National de la Recherche Luxembourg
Vienna University of Economics and Business

Funding text :

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).

Available on ORBilu :

since 11 December 2025

Statistics

Number of views

1 (0 by Unilu)

Number of downloads

0 (0 by Unilu)

More statistics

Scopus citations^®

Scopus citations^®
without self-citations

OpenCitations

OpenAlex citations

WoS citations^™

Bibliography

S. Agarwal The impact of homeowners’ housing wealth misestimation on consumption and saving decisions Real Estate Economics 35 135 154 10.1111/j.1540-6229.2007.00185.x
E. Anenberg Loss aversion, equity constraints and seller behavior in the real estate market Regional Science and Urban Economics 41 67 76 10.1016/j.regsciurbeco.2010.08.003
Baffigi, A., Cannari, L., & D’Alessio, G. (2016). Fifty years of household income and wealth surveys: history, methods and future prospects. Bank of Italy, Economic Research and International Relations Area.
M.J. Bailey R.F. Muth H.O. Nourse A regression method for real estate price index construction Journal of the American Statistical Association 58 933 942 10.1080/01621459.1963.10480679
H. Benítez-Silva S. Eren F. Heiland S. Jiménez-Martín How well do individuals predict the selling prices of their homes? Journal of Housing Economics 29 12 25 10.1016/j.jhe.2015.04.001
Cannari, L, D’Alessio, G, & Vecchi, G. (2016). House prices in Italy, 1927 – 2012. Banca D’Italia Questioni di Economia e Finanza (Occational Papers), No. 333.
Cannari, L, & Faiella, I. (2008). House prices and housing wealth in Italy. In Household wealth in Italy. Banca D’Italia.
Case, K. E., & Shiller, R. J. (1987). Prices of single family homes since 1970: New indexes for four cities. New England Economic Review, Sept/Oct:45–56.
K.E. Case R.J. Shiller The efficiency of the market for single-family homes American Economic Review 79 125 137
S. Chan S. Dastrup I.G. Ellen Do homeowners mark to market? a comparison of self-reported and estimated market home values during the housing boom and bust Real Estate Economics 44 627 657 10.1111/1540-6229.12103
M.A. Davis E. Quintin On the nature of self-assessed house prices Real Estate Economics 45 3 628 649 10.1111/1540-6229.12168
de Haan, J, & Diewert, W. E. Eds. (2013). Handbook on Residential Property Prices Indices (RPPIs). Methodologies and Working Papers. Eurostat, Luxembourg.
EG-LMM. (2020). Understanding household wealth: linking macro and micro data to produce distributional financial accounts. Statistics Paper Series, No 37 / July 2020.
M. Einiö M. Kaustia V. Puttonen Price setting and the reluctance to realize losses in apartment markets Journal of Economic Psychology 29 19 34 10.1016/j.joep.2007.02.004
Gallin, J, Molloy, R, Nielsen, E. R, Smith, P. A, & Sommer, K. (2018). Measuring aggregate housing wealth: New insights from an automated valuation model. FEDS Working Paper, No. 2018–064.
T.I. Garner R. Verbrugge Reconciling user costs and rental equivalence: Evidence from the US consumer expenditure survey Journal of Housing Economics 18 3 172 192 10.1016/j.jhe.2009.07.001
D. Genesove C. Mayer Loss aversion and seller behavior: Evidence from the housing market Quarterly Journal of Economics 116 1233 1260 10.1162/003355301753265561
J.L. Goodman Jr J.B. Ittner The accuracy of home owners’ estimates of house value Journal of Housing Economics 2 339 357 10.1016/1051-1377(92)90008-E
A. Heston A.O. Nakamura Questions about the equivalence of market rents and user costs for owner occupied housing Journal of Housing Economics 18 273 279 10.1016/j.jhe.2009.07.007
R.J. Hill Hedonic price indexes for residential housing: A survey, evaluation and taxonomy Journal of Economic Surveys 27 879 914 10.1111/j.1467-6419.2012.00731.x
Ò. Jordà M. Schularick A.M. Taylor Macrofinancial history and the new business cycle facts NBER Macroeconomics Annual 31 1 213 263 10.1086/690241
D. Kahneman J.L. Knetsch R.H. Thaler Anomalies: The endowment effect, loss aversion, and status quo bias Journal of Economic Perspectives 5 1 193 206 10.1257/jep.5.1.193
Keely, R., & Lyons, R. C. (2022). Housing prices, yields and credit conditions in Dublin since 1945. The Journal of Real Estate Finance and Economics, 64, 404–439.
P.E. Kennedy Estimation with correctly interpreted dummy variables in semilog- arithmic equations [the interpretation of dummy variables in semilogarithmic equations] American Economic Review 71 4 801 801
K.A. Kiel J.E. Zabel The accuracy of owner-provided house values: The 1978–1991 American Housing Survey Real Estate Economics 27 2 263 298 10.1111/1540-6229.00774
L. Kish J.B. Lansing Response errors in estimating the value of homes Journal of the American Statistical Association 49 267 520 538
K. Knoll M. Schularick T. Steger No price like home: Global house prices, 1870–2012 American Economic Review 107 2 331 353 10.1257/aer.20150501
Leamer, E. E. (2007). Housing is the business cycle. Paper presented at Housing, Housing Finance, and Monetary Policy Symposium, sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, WY, 30 August – 1 September 2007.
E.E. Leamer Housing really is the business cycle: What survives the lessons of 2008–09? Journal of Money, Credit and Banking 47 S1 43 50 10.1111/jmcb.12189
R. Molloy E.R. Nielsen How can we measure the value of a home? comparing model-based estimates with owner-occupant estimates FED Notes 2018–10 11
Naidin, M. D, Waltl, S. R, & Ziegelmeyer, M. H. (2022). Objectified housing sales and rent prices in representative household surveys: the impact on macroeconomic statistics. LISER Working Paper Series, 2022–03.
S. Rosen Hedonic prices and implicit markets: Product differentiation in pure compe- tition Journal of Political Economy 82 1 34 10.1086/260169
Scatigna, M, Szemere, R, & Tsatsaronis, K. (2014). Residential property price statistics across the globe. BIS Quarterly Review, September 2014.
P.J. Scott C. Lizieri Consumer house price judgements: New evidence of anchoring and arbitrary coherence Journal of Property Research 29 1 49 68 10.1080/09599916.2011.638144
C. Senik Wealth and happiness Oxford Review of Economic Policy 30 1 92 108 10.1093/oxrep/gru004
R.J. Shiller Arithmetic repeat sales price estimators Journal of Housing Economics 1 1 110 126 10.1016/S1051-1377(05)80028-2
Shiller, R. J. (2008). Derivatives markets for home prices. Technical report, National Bureau of Economic Research.
Shiller, R. J. (2015). Irrational Exuberance (3rd ed.). Princeton University.
Stephens, T. A, & Tyran, J.-R. (2012). ’At least I didn’t lose money’– nominal loss aversion shapes evaluations of housing transactions. University of Copenhagen Dept. of Economics Discussion Paper, (12–14).
Van der Cruijsen, C, Jansen, D.-J, & van Rooij, M. (2014). The rose-colored glasses of homeowners. De Nederlandsche Bank Working Paper, 421.
N.E. Wallace R.A. Meese The construction of residential housing price indices: A comparison of repeat-sales, hedonic-regression, and hybrid approaches The Journal of Real Estate Finance and Economics 14 1/2 51 73 10.1023/A:1007715917198
S.R. Waltl A hedonic house price index in continuous time International Journal of Housing Markets and Analysis 9 4 648 670 10.1108/IJHMA-10-2015-0066
S.R. Waltl Wealth inequality: A hybrid approach toward Multidimensional Distribu- tional National Accounts in Europe Review of Income and Wealth 68 1 74 108 10.1111/roiw.12519