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Asking price has a fundamental influence on market behaviour and understanding how attributes affect the perceived price of housing. This paper employs a large database of houses from the Spanish housing market to estimate the role of attributes in asking price formation. STAR methodology and GLM with random effects are used to extract the price of attributes and the spatial and time pattern. Results show that the pricing of attributes varies by geographical region and over time with property size and economic and demographic attributes being the key variables explaining asking price formation. [ABSTRACT FROM PUBLISHER]

Abstract: This paper investigates the relationship between the list and sale price of residential properties over the housing cycle. In down or normal markets the list price generally exceeds the sales price; however, when the housing market is strong, homes sell for more than their list price. This observation is not consistent with the assumptions made in the standard model of home sellers’ search behavior. We consider alternative models. In one, sellers set list prices based on their expectations of future changes in sales prices and the arrival rate of buyers; however, demand shocks occur. This model partially explains our data from the Belfast, U.K. housing market, but it fails to predict the list to sales price ratio during a sustained housing boom. We next describe a model where sellers’ endogenously select their search mechanism depending on the strength of the housing market. We find support for the conjecture that sellers switch to an auction-like model during housing booms. There also is evidence that during a downturn in the market, sellers’ list prices are sticky. [Copyright &y& Elsevier]

This paper examines the conflicting outcomes of government intervention in the housing market with particular reference to taxation instruments. The use of fiscal policy as a demand-side measure within the Irish housing market is discussed. Outcomes include a high growth environment, unsustainable house price inflation and pressure on owner occupiers due to the activities of investors. The paper reviews policy mechanisms advocated under the Bacon Reports and the government's policy response notably in relation to stamp duty changes. The analysis seeks to assess the impact of the policy measures in relation to different housing markets and house types in Dublin. The discussion highlights that the short-term impact of legislative changes can be rapidly nullified by market influences. [ABSTRACT FROM AUTHOR]

This paper analyses the margin between the Cash Rate Target and LIBOR, and its relationship with house price variation in Australia. The research spans 24 years utilising monthly data to analyse the relationship between Australian house price and LIBOR/CRT spreads. Data are drawn from several sources before the time series is sub-divided into splines forming different stages of the housing market cycle. Models are developed based upon differencing the data and employing ADF tests for stationarity and examination via an Autoregressive Distributed Lag approach and Error Correction Model based data series. Results show there are various macroeconomic, financial and lending short-run dynamics which impact on house prices. Cointegration is also evident, which shows the LIBOR rate to comprise both a shot-run and long-run relationship with house prices. The margin between the CRT and LIBOR is less significant and is only observed in the short-run. The various approaches clearly exhibit the dynamism inherent between the wider macroeconomic and financial environment, which serves to highlight that different drivers affect the housing market at differing magnitudes and at different times. Nonetheless, both the short-run and long-run findings show GDP and LIBOR to be proponents for understanding the sensitivity of house prices in Australia. [ABSTRACT FROM AUTHOR]