Keywords
Citation
(2014), "2013 Awards for Excellence", Journal of European Real Estate Research, Vol. 7 No. 1. https://doi.org/10.1108/JERER-05-2014-002
Publisher
:Emerald Group Publishing Limited
2013 Awards for Excellence
Article Type: 2013 Awards for Excellence From: Journal of European Real Estate Research, Volume 7, Issue 1
The following article was selected for this year’s Outstanding Paper Award for Journal of European Real Estate Research
"The influence of herding behaviour on house prices"
Christian Hott
Zurich Insurance Group, Zurich, Switzerland
Purpose – A comparison of fundamental house prices with actual prices indicates that house prices fluctuate more than fundamentally justified, a fact difficult to explain with standard rational agent models. The purpose of this paper is to evaluate to what extent herding behaviour among investors can be seen as an explanation for deviations of house prices from their fundamental value.
Design/methodology/approach – To see whether house prices fluctuate more than fundamentally justified, the paper calculates a fundamental house price and compares it to the actual price for seven European and three non-European OECD countries. Then the paper incorporates herding behaviour into the house-price model and examines its influence on the development of prices.
Findings – A comparison of the fundamental house prices with actual prices indicates that house prices fluctuate more than fundamentally justified. The calibration of the herding model indicates that it can help to explain fluctuations of actual house prices.
Originality/value – The incorporation of herding behaviour into a housing model and the calibration of its impact are the main innovations of this paper.
Keywords: Asset valuation, Bubbles, Europe, Herding behaviour, House prices, Housing, Prices
http://www.emeraldinsight.com/10.1108/JERER-05-2014-002
This article originally appeared in Volume 5 Number 3, 2012. Journal of European Real Estate Research
The following articles were selected for this year’s Highly Commended Award
“House prices, disposable income and permanent and temporary shocks: the NZ, UK and US experience
Patricia Fraser, Martin Hoesli and Lynn McAlevey
This article originally appeared in Volume 5 Number 1, 2012, Journal of European Real Estate Research
“The role of sentiment indicators for real estate market forecasting
Sotiris Tsolacos
This article originally appeared in Volume 5 Number 2, 2012, Journal of European Real Estate Research
“Green agenda and green performance: empirical evidence for real estate companies
Marcelo Cajias, Peter Geiger and Sven Bienert
This article originally appeared in Volume 5 Number 2, 2012, Journal of European Real Estate Research