| 1. |
- Andersson, Magnus, et al.
(författare)
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How cultural values are reflected on the housing market : direct effects and the cultural spillover
- 2019
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Ingår i: International Journal of Housing Markets and Analysis. - : Emerald Group Publishing Limited. - 1753-8270 .- 1753-8289. ; 12:3, s. 405-423
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Tidskriftsartikel (refereegranskat)abstract
- Purpose: The purpose of this paper is to analyse two questions. First, is there, and if so, how large is the price premium paid for a building exhibiting a cultural value? Second, are there any spillover effects of buildings with cultural values on sales prices of neighbouring houses? Design/methodology/approach: Using a unique database of all buildings in the region of Halland, Sweden, combined with transaction data, hedonic models can be estimated, with spatially lagged variables describing proximity to three classes of culturally classified building – A, B and C – corresponding to building of national interest, building of regional interest and building of local interest. In addition, the authors also estimate models with a spatial specification on the error term, in an attempt to control for omitted variables. Findings: The results indicate that cultural classification plays a role in determining the price of a property, with large effects (ranging between 36 and 60% price premiums) for the highest classification. In addition, the authors find evidence of a cultural externality, houses in the vicinity of building with high cultural value sell at a small, but statistically significant premium of 1%. Originality/value: The cultural externality may be overlooked when it comes to valuation of cultural values in society, and therefore, it is likely that warranted protection acts to preserve cultural values in buildings become less than the social optimum. This paper suggests a new measure to cultural values contrasting previous research that rely on cultural preservation. This approach should limit problems with measurement errors that may lead to biased results.
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| 2. |
- Asal, Maher, 1957-
(författare)
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Long-run drivers and short-term dynamics of Swedish real house prices
- 2018
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Ingår i: International Journal of Housing Markets and Analysis. - 1753-8270 .- 1753-8289. ; 11:1, s. 45-72
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Tidskriftsartikel (refereegranskat)abstract
- PurposeThis paper aims to assess the long-run drivers and short-term dynamics of real house prices in Sweden for 1986Q1 to 2016Q4. More specifically, the author examines the extent to which real house prices are determined by affordability, demographics and asset price factors.Design/methodology/approachThe author conducts a cointegration analysis and applies a vector autoregression model to examine the long- and short-run responsiveness of Swedish real house prices to a number of key categories of fundamental variables.FindingsThe empirical results indicate that house prices will increase in the long run by 1.04 per cent in response to a 1 per cent increase in household real disposable income, whereas real after-tax mortgage interest and real effective exchange rates show average long-term effects of approximately – 8 and – 0.7 per cent, respectively. In addition, the results show that the growth of real house prices is affected by growth in mortgage credit, real after-tax mortgage interest rates and disposable incomes in the short run, whereas the real effective exchange rate is the most significant determinant of Swedish real house appreciation.Originality/valueThe impact of the two lending restrictions been implemented after the financial crisis – the mortgage cap in October 2010 and the amortization requirement in June 2016 – are ineffective to stabilize the housing market. This suggests that macroprudential measures designed to ease pressure on housing prices and reduce risks to financial stability need to focus on these fundamentals and address the issues of tax deductibility on mortgage rates and the gradual implementation of debt-to-income limits to contain mortgage demand and improve households' resilience to shocks.
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| 3. |
- Berggren, Björn, 1972-, et al.
(författare)
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Homeownership and entrepreneurship A regional and industrial analysis of house prices and startups
- 2019
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Ingår i: International Journal of Housing Markets and Analysis. - : EMERALD GROUP PUBLISHING LTD. - 1753-8270 .- 1753-8289. ; 12:3, s. 456-473
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Tidskriftsartikel (refereegranskat)abstract
- Purpose The purpose of this paper is to analyze the relationship between housing markets and new firm formation in six different industries in all 284 municipalities in Sweden. Design/methodology/approach The authors have used data from Statistics Sweden and The Swedish Agency for Economic and Regional Growth to develop a model to analyze the relationship between house prices and industry-specific new firm formation, with the interaction effect of financial infrastructure. Findings In the data, stable high house prices have no effect on entrepreneurship. However, a market with rising house prices has a positive effect on new firm formation, in retail, construction, business-to-business services and miscellaneous sectors, but produced no effect in either mining, agriculture and fishing or in manufacturing. The interaction between rising house prices and financial infrastructure does not change the positive effect on retail, business-to-business services and miscellaneous sectors, but within the construction industry, the positive effect on new firm formation disappears. In manufacturing, the authors observe the opposite - a positive effect, instead of no effect previously. Originality/value The contribution of this study is to provide evidence of how house prices are associated with entrepreneurship in different industries, as well as analyzing how the interaction between house prices and financial infrastructure is associated with entrepreneurship. By separating observations in time, endogeneity is controlled and a causal relationship where higher house prices is postulated, which leads to an increase in entrepreneurial activity in different industries. By using a spatial Durbin model, the authors control for spatial dependency.
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| 4. |
- Blomé, Gunnar, et al.
(författare)
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Slumlords in the Swedish Welfare state : how is it possible?
- 2012
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Ingår i: International Journal of Housing Markets and Analysis. - : Emerald Group Publishing Limited. - 1753-8270 .- 1753-8289. ; 5:2, s. 196-210
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Tidskriftsartikel (refereegranskat)abstract
- Purpose – The purpose of this paper is to try to explain how long-term mismanagement of a housing estate could arise in a country with a strong legal framework aimed at preventing such situations. Design/methodology/approach – Assuming that both tenants and landlords are rational, the paper presents a set of hypotheses that is consistent with the information available. Findings – It is argued that the tenants stayed even though the rent was higher and the quality was lower than in neighboring areas because of a combination of three factors: rents were paid by different forms of welfare payments; lack of alternatives because of queues to other areas; and because some tenants saw an advantage in the “no-question” asked policy that the slumlord followed. It is further argued that the property owner found this slum-strategy profitable either because he hoped to find a “bigger fool” to sell to and/or because the decision makers in the company had not invested their own money. Both tenants and investors were, in the end, losers, but not the company managers. Social implications – The Swedish legal framework is, to a large extent, based on the idea that tenants should take action when there are problems. For several reasons the tenants in the area did not do that and it indicates that a more active role for the local authorities is necessary. Originality/value – The paper focuses on an interesting case that most people thought could not occur and tries to explain this within a framework of rational actors.
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| 5. |
- Blomé, Gunnar, et al.
(författare)
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The return of the Swedish slumlord : Analysis of a recent case
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Ingår i: International Journal of Housing Markets and Analysis. - 1753-8270 .- 1753-8289.
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Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- Purpose: The article tries to explain how long-term mismanagement of a housing estate could arise in a country with a strong legal framework aimed at preventing such situations.Approach: Assuming that both tenants and landlord are rational, the article presents a set of hypotheses that is consistent with the information available.Findings: It is argued that the tenants stayed even though the rent was higher and the quality was lower than in neighboring areas because of a combination of three factors: Rents was paid by different forms of welfare payments, lack of alternatives because of queues to other areas and because some tenants saw an advantage in the “no-question“ asked policy that the slumlord followed. It is further argued that the property owner found this slum-strategy as profitable either because the hoped to find a “bigger fool” to sell to and because the decision makers in the company had not invested their own money. Both tenants and investors were in the end losers, but not the company managers.Practical and social implications: The Swedish legal framework is to a large extent based on the idea that tenants should take action when there are problems. For several reasons the tenants in the area did not do that and it indicates that a more active role for the local authorities is necessary.Originality: The article focus on an interesting case that most people thought could not occur and tries to explain this within a framework of rational actors.
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| 6. |
- Hullgren, Maria, 1960-
(författare)
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Mortgage decisions in Swedish housing co-operatives
- 2017
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Ingår i: International Journal of Housing Markets and Analysis. - : EMERALD GROUP PUBLISHING LTD. - 1753-8270 .- 1753-8289. ; 10:4, s. 572-584
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Tidskriftsartikel (refereegranskat)abstract
- Purpose - This paper aims to highlight co-ops mortgage choice strategy and factors that influence the board's mastermortgage decisions in Swedish co-op associations. Design/methodology/approach - Data are collected through a pre-study interviewing chair persons in co-ops in Stockholm followed up by a more extensive questionnaire. Answers from these are tested by logistic regression and compared to hypotheses based on earlier findings on mortgage choice on a household level and additional findings from the interviews. Findings - The mortgage choice in co-ops seems to be more dependent on financial similarities than physical location. Loan-to-value (LTV) ratios have a dominant influence in that co-ops with high LTV ratios have a lower preference for adjustable-rate mortgages (ARMs). When checking for location, the media and individual chair persons also seem to affect the choice. Overall, there seems to be awareness in co-ops boards about the potential financial effects of their mortgage choice. Practical implications - The negative connection between high LTV ratios and ARMs implies that boards try to make their mortgage expenditure more predictable. This reduces liquidity risks which may be of importance for financially constrained owners. Findings indicate that co-ops are risk averse and that the short-term threat for increasing interest costs is low. This is of value to both homebuyers and the financial industry. Originality/value - This paper examines factors influencing mortgage choices in an organizational context such as co-op associations. The master mortgage in a co-op can have major influence on members financial situation but, to the author's knowledge, a similar study has never been done before, neither in an international nor a Swedish context.
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| 7. |
- Hungria-Gunnelin, Rosane, et al.
(författare)
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Brokers’ list price setting in an auction context
- 2021
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Ingår i: International Journal of Housing Markets and Analysis. - : Emerald. - 1753-8270 .- 1753-8289. ; 14:3, s. 481-497
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Tidskriftsartikel (refereegranskat)abstract
- Purpose - The role of list price is often discussed in a narrative describing sellers’ preferences or sellers’ price expectations. This paper investigates a set of list price strategies that real estate brokers have available to influence the outcome of the sale, which may be many times self-serving.Design/methodology/approach - By analyzing real estate brokers’ arguments on the choice of list price level, a couple of hypotheses are formulated with regard to different expected outcomes that depend on list price. We empirically test two hypotheses for the underlying incentives in the choice of list price from the real estate broker’s perspective: (1) lower list price compared to market value leads to higher sales price, (2) lower list price compared to market value leads to a quicker sale. In order to investigate the two hypotheses, we adopt different methodological frameworks: hypothesis 1 is tested by running a classical hedonic model, while hypothesis 2 is tested through a duration model. We further test the hypotheses splitting the full sample into two different price segments: above and below median list price.Findings – The results show that hypothesis 1 is rejected for the full sample as well as for the two sub-samples. That is, contrary to the common narrative among brokers that underpricing leads to a higher sales price, underpricing lower sales price. Hypothesis 2, however, receives support for the full sample as well as for the two sub-samples. The latter result points to that brokers may be tempted to recommend a list price significantly below the expected selling price in order to minimize their effort while showing a high turnover of apartments.Originality/value – Although there are a large number of previous studies analyzing list price strategies in the housing market, this paper is one of the few empirical studies that addresses the effect of list price choice level on auction outcomes of non-distressed housing sales.
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| 8. |
- Iqbal, Asifa, et al.
(författare)
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Park proximity, crime and apartment prices
- 2018
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Ingår i: International Journal of Housing Markets and Analysis. - : Emerald Group Publishing Limited. - 1753-8270 .- 1753-8289. ; 11:4, s. 669-686
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Tidskriftsartikel (refereegranskat)abstract
- PurposeThere is a lack of understanding in the literature on the relation between parks and house price in relation to crime in Scandinavian context. This paper aims to investigate the effect of the amenity value of accessibility to parks on apartment prices with reference to crime rates in parks in Stockholm.Design/methodology/approachThis paper analyses the effects of park proximity and crime in parks on apartment prices by using geographic information systems and hedonic modelling.FindingsFindings show that the proximity of parks as an environmental amenity has an effect on apartment prices. The results also demonstrate that the impact of parks on apartment prices is different in the different segments of the apartment market in Stockholm. Moreover, various types of parks may differ in their impact, for instance, grass parks and park blocks are more desirable in Stockholm than landscape parks and neighbourhood parks. The effects of crimes in parks influence apartment prices negatively.Originality/valueThis paper provides a new methodology by using the shortest distance to a park as a main variable. The shortest distance to a park variable is considered a better choice than using park as an aggregate measure. To the best of the author's knowledge, this is the first study that investigates the effect of specific park types, for instance, grass parks, neighbourhood parks, landscape parks and park blocks, in Stockholm housing market.
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| 9. |
- Irandoust, Manuchehr
(författare)
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House prices and unemployment : an empirical analysis of causality
- 2019
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Ingår i: International Journal of Housing Markets and Analysis. - 1753-8270 .- 1753-8289. ; 12:1, s. 148-164
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Tidskriftsartikel (refereegranskat)abstract
- PurposeThis paper aims to examine whether there exists a long-run causal relationship between house prices and unemployment rates for eight major European countries.Design/methodology/approachThe bootstrap panel Granger causality approach that accounts for cross-sectional dependence, slope heterogeneity and structural breaks is used to detect the direction of causality.FindingsThe empirical findings for the overall panel support the presence of unidirectional causality running from house prices to unemployment.Practical implicationsThe findings are not only important for households but also for policymakers concerned with economic and financial stability.Originality/valueThere are only a limited number of studies that have investigated the direct link between house prices and employment or unemployment. Given the increased importance of labor market variables, particularly the choice of the unemployment rate as a key indicator in designing forward guidance and the increased financial stability concerns regarding house price dynamics, it is important to better understand the causal linkages between house prices and unemployment rates. To the best of the author’s knowledge, this paper is the first to apply the bootstrap panel Granger causality approach to examine the relationship between house prices and unemployment rates.
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| 10. |
- Irandoust, Manuchehr
(författare)
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House prices and unemployment : an empirical analysis of causality
- 2019
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Ingår i: International Journal of Housing Markets and Analysis. - : Emarald Group Publishing Ltd. - 1753-8270 .- 1753-8289. ; 12:1, s. 148-164
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Tidskriftsartikel (refereegranskat)abstract
- Purpose This paper aims to examine whether there exists a long-run causal relationship between house prices and unemployment rates for eight major European countries. Design/methodology/approach The bootstrap panel Granger causality approach that accounts for cross-sectional dependence, slope heterogeneity and structural breaks is used to detect the direction of causality. Findings The empirical findings for the overall panel support the presence of unidirectional causality running from house prices to unemployment. Practical implications The findings are not only important for households but also for policymakers concerned with economic and financial stability. Originality/value There are only a limited number of studies that have investigated the direct link between house prices and employment or unemployment. Given the increased importance of labor market variables, particularly the choice of the unemployment rate as a key indicator in designing forward guidance and the increased financial stability concerns regarding house price dynamics, it is important to better understand the causal linkages between house prices and unemployment rates. To the best of the author’s knowledge, this paper is the first to apply the bootstrap panel Granger causality approach to examine the relationship between house prices and unemployment rates.
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