Data and Code for: Quality-adjusted house price indexes

DOI

The constant-quality assumption in repeat-sales house price indexes (HPIs) introduces a significant time-varying attribute bias. The direction, magnitude, and source of the bias varies throughout the market cycle and across metropolitan statistical areas (MSAs). We mitigate the bias using a data-driven textual analysis approach that identifies and includes salient text from real estate agent remarks in the repeat-sales estimation. Absent the text, MSA-level HPIs are biased downwards by as much as 7% during the financial crisis and upwards by as much as 20% after the crisis. The geographic concentration of the bias magnifies its effect on local HPIs.

Transactions sold on the Multiple Listings Service platform across 9 MSAs. Smallest Geographic Unit: Property

Data preparation code provided.  Multiple Listings Service (MLS) data is proprietary but is available for purchase from the MLS.  See README file for more information.

Identifier
DOI https://doi.org/10.3886/E116941
Metadata Access https://www.da-ra.de/oaip/oai?verb=GetRecord&metadataPrefix=oai_dc&identifier=oai:oai.da-ra.de:765138
Provenance
Creator Nowak, Adam; Smith, Patrick
Publisher ICPSR - Interuniversity Consortium for Political and Social Research
Publication Year 2020
Rights Download; This study is freely available to the general public via web download.
OpenAccess true
Contact ICPSR - Interuniversity Consortium for Political and Social Research
Representation
Resource Type Dataset; event/transaction data, text
Discipline Social Sciences