Talk:Real estate economics

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Above undated message substituted from Template:Dashboard.wikiedu.org assignment by PrimeBOT (talk) 07:51, 17 January 2022 (UTC)

The Land Question

It seems as though the valuation of land vs the value of improvements question, (land and capital being different things) is missing?

For example,

Somers, William A., orig. 1901. The Valuation of Real Estate for the Purpose of Taxation. St. Paul, Minn.: orig. W.A. Somers; later eds. by Rich and Clymer.

H. L. Lutz The Somers System of Realty Valuation, The Quarterly Journal of Economics, Vol. 25, No. 1 (Nov., 1910), pp. 172-181

The Science and Practice of Urban Land Valuation by W. W. Pollock, K. W. H. Scholz Review author[s]: Arthur J. Mertzke The Journal of Land & Public Utility Economics, Vol. 4, No. 1 (Feb., 1928)

http://209.85.165.104/search?q=cache:Hj8MelNSHR0J:gislab.wharton.upenn.edu/silus/Papers/Pick%2520Paper%252022OCT.doc+Somers+land+valuation&hl=en&gl=us&ct=clnk&cd=47

Disintermediation

Is this the page where we should encyclopedically summarize the economic theory aspects of disintermediation in the Real Estate industry? I would think so, and am somewhat surprised to find nothing of the phenomeon already in the article. Or is it elsewhere in Wikipedia? Do any of the economists who read this have new/recently published articles on the trend? N2e 23:27, 13 October 2006 (UTC)

Sample journal articles from the economics literature

I just did a quickie search on Google Scholar. Here's some info on three journal articles with the most citations (30 to 50). There are many others. N2e 23:27, 13 October 2006 (UTC)

• Investigating the interplay between structure and information and communications technology in the real estate industry

Authors: Kevin Crowston, Steve Sawyer, Rolf Wigand Journal: Information Technology & People ISSN: 0959-3845 Year: Jun 2001 Volume: 14 Issue: 2 Page: 163 - 183 Publisher: MCB UP Ltd
Abstract: Information and communication technologies (ICTs) are reshaping many industries, often by reshaping how information is shared. However, while the effects and uses of ICT are often associated with organizations (and industries), their use occurs at the individual level. To explore the relationships between individual uses of ICT and changes to organization and industry structures, we examined the residential real estate industry. As agents, buyers and sellers increase their uses of ICT, they also change how they approach their daily work. The increasing uses of ICT are simultaneously altering industry structures by subverting some of the realtors’ control over information while also reinforcing the existing contract-based structures. This structurational perspective and our findings help to explain why information intermediaries persist when technology-based perspectives would suggest their disappearance.

• Strategies for Internet Middlemen in the Intermediation/Disintermediation/Reintermediation Cycle

    Publisher:  	Routledge, part of the Taylor & Francis Group 
 	Issue:  	Volume 9, Numbers 1-2 / April 1, 1999 
 	Pages:  	109 - 117 
 	URL:  	Linking Options 
 	DOI:  	10.1080/101967899359337 

Alina M. Chircu, Robert J. Kauffman
Abstract: The emergence of new technologies for electronic commerce on the Internet makes possible different ways of interacting for all the players in a market. This transformation of the traditional market interaction can be understood in terms of an intermediation, disintermediation and reintermediation (IDR) cycle. By looking at a series of minicases of the IDR cycle in various industries, we are able to identify four major competitive strategies firms use in the IDR cycle: partnering for access, technology licensing, partnering for content, and partnering for application development. We then analyze the conditions under which these strategies help a firm to achieve sustainable competitive advantage in its marketplace. Our analysis reveals that each strategy requires a different combination of firm capabilities and environmental conditions. As a result, these middlemen should not rely on technological innovation alone if they want to be successful in the marketplace.

• Real Estate War in Cyberspace: An Emerging Electronic Market?

Kevin Crowston and Rolf T. Wigand

School of Information Studies
Syracuse University
4–206 Center for Science and Technology
Syracuse, NY 13244–4100, USA 

Abstract: In this paper, we explore how electronic commerce, the World-Wide Web in particular, is affecting the real estate industry. Real estate is a promising setting for studying electronic commerce because it is an information-intensive and informationdriven industry; transaction-based, with high value and asset-specificity; with many market-intermediaries (agents and brokers who connect buyers and sellers rather than buying or selling themselves); and experiencing on-going information technology (IT) related changes. We analyze a real estate transaction to suggest where IT might change the process of buying or selling a house and discuss several current ventures in this area. This analysis suggests that Web-based commerce is eroding the long-enjoyed information monopoly of real-estate agents and electronic commerce applications have the potential to drastically change current practices in the real-estate industry, including the disintermediation of agents. xyz

'See also' reversion

I just reinstuted a link from the See also section to the article Short sale (real estate), which had been reverted by an editor, assumed with good intent. No rationale for the previous reversion was offered. If there is some reason I cannot see that this link should not be in the article, let's discuss it here on the talk page. N2e (talk) 18:06, 8 March 2008 (UTC)

Is 'Real Estate Economics' pseudoscience?

"Real estate economics is the application of economic techniques to real estate markets. It tries to describe, explain, and predict patterns of prices, supply, and demand". Does it succeed in explaining or predicting anything though? Astrology tries to make predictions too. Unless someone can come up with valid evidence that it actually predicts anything, I'm tempted to tag this as pseudoscience. I suspect many other economics articles could be treated the same way...

Ok, maybe I'm being a little pointy here, but the article does seem to make out human behaviour as governed by mathematical formulae. If there is WP:RS for that, I've not seen it. Perhaps someone could add real people to the equations somehow... AndyTheGrump (talk) 03:28, 13 November 2010 (UTC)

Interlanguages link to Japanese

Inter-languages link to Japanese page links to ja:不動産金融 (= real estate financing) and it is not correspondent with "Real estate economics." If nobody has different opinion, I will delete the interlanguages link to "不動産金融 (ja)." --KurodaSho (talk) 06:23, 25 August 2014 (UTC)

Dr. Buckley's comment on this article

Dr. Buckley has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

Under federally supported agencies it does not discuss Fannie Mae and Freddie Mac which both were put into conservatorship by the U.S. government. Nor does it mention FHA or Ginnie Mae two important federal institutions which have been important in the system.

The discussion of savings and loans is dated. Nor is there any mention of mortgage backed securities or the problems that arose with the system that led to a world wide recession.

Similarly, the discussion of supply does little on the constraints that local regulations place on housing costs. This has been much discussed in the literature.

Finally, it has an exclusively U.S. orientation.

I think work by Ed Glaeser and Steve Malpezzi for the U.S. would be useful on supply constraints. On housing finance Bob Van Order has written a great deal as has Pat Hendershott. On European systems, David Miles and Christine Whitehead would be good beginnings.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Buckley has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Buckley, Robert M. & Mathema, Ashna S., 2007. "Is Accra a superstar city ?," Policy Research Working Paper Series 4453, The World Bank.

ExpertIdeasBot (talk) 19:05, 3 June 2015 (UTC)

Dr. Hasan's comment on this article

Dr. Hasan has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

I have written several articles on the subject looking at the matter from the Islamic viewpoint while working as contractual faculty at INCEIF. I found that not only in Malaysia but across the globe most Islamic banks were using the diminishing musharkah model with an overall fixed installment regimen with increasing amortisation of capital through a buy back provision. The formula for calculating the periodic uniform installment payments was the same as the conventional interest based banks use and which is a part of the Excel program. The formula with exponential term prima facie involved compounding of return on capital – does not matter if one chooses to call interest as profit or rent; coloring of feathers does not change the bird.

I demonstrated that the use of the formula in Islamic home financing via diminishing musharkah is in form and results identical with conventional interest based financing. In that it violates two Islamic imperatives. First, it involves compounding of return on capital – doesn’t matter whether you call it profit or rent. Second, it passes the ownership of the house to the client at a slower rate that the payments made. An alternative model was presented with uniform capital pay back but a varying return on investment. In addition to being free of these two blemishes the model was shown as having many other merits. The criticism and the alternative were presented to the INCEIF faculty. But none submitted a comment on the presentation in writing. INCIEF Blog archives contain interesting lurching on the issue. Being dominated by the bankers, the institution gave a final burial to the whole idea.

The papers were sent to some leading bankers in Malaysia and abroad but none reverted. Several leading Islamic scholars sitting on Shari’ah Boards of prestigious international bank were also approached but none wrote back in response. A few non-INCEIF academics did offer some critical comments; they were replied in print.

Sharia’ah scholars seem to take the position that by what formula or process a bank arrives at the periodic uniform installment is not their concern; they come into the picture when the contract is entered into and its various sections have been drafted. But in my opinion they have to see also how the agreement will operate on ground and whether r not its impact on the parties will meet the norms of justice. They have to take note of the points I have raised. I wish to put it across that whether a bank uses the compounding formula or arrives by any other law abiding method a uniform installment payment with varying capital amortization, it cannot be free of the two indicated violations of the law.

I believe the learned Shar’ah scholars have to clarify the position in public interest, especially in an age when right to information has become globally recognised. A paper highlighting the points raised and claiming the new model blemish free is enclosed.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Hasan has published scholarly research which seems to be relevant to this Wikipedia article:

• Reference : Hasan, Zubair, 2012. "Mortgage contracts in Islamic home finance: Musharakah Mutanaqisah program vs. Zubair diminishing balance model," MPRA Paper 39067, University Library of Munich, Germany.

ExpertIdeasBot (talk) 12:53, 15 June 2016 (UTC)

Dr. Andre's comment on this article

Dr. Andre has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

- The part on supply should better distinguish between the supply of existing homes and the supply of new homes.

- "people to over-invest in real estate—that is, to invest more money in an asset than it is worth on the open market.": This is an unusual statement. Rather households over-consume housing services because their home is also an investment. - "If permanent income elasticity is measured, the results are slightly higher (Kain and Quigley 1975) because transitory income varies from year to year and across individuals, so positive transitory income will tend to cancel out negative transitory income. Many housing economists use permanent income rather than annual income because of the high cost of purchasing real estate." This part in unclear. Economists use permanent income for ordinary consumption too.

- Federally supported agencies: mention the most important ones (Fannie Mae and Freddy Mac).

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Andre has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference 1: Ghassen El Montasser & Ahdi N. Ajmi & Tsangyao Chang & Beatrice D. Simo-Kengne & Christophe Andre & Rangan Gupta, 2013. "Cross-Country Evidence On The Causal Relationship Between Policy Uncertainty And House Prices," Working Papers 201380, University of Pretoria, Department of Economics.

• Reference 2: Nathalie Girouard & Mike Kennedy & Paul van den Noord & Christophe Andre, 2006. "Recent House Price Developments: The Role of Fundamentals," OECD Economics Department Working Papers 475, OECD Publishing.

ExpertIdeasBot (talk) 18:33, 26 July 2016 (UTC)

Sweden

Mark- och byggkostnader per år från 1994-2015 i Sverige per boendeyta i kvadratmeter (blått) och antalet nybyggda lägenheter per år (grått).

--Johnsoniensis (talk) 20:23, 22 October 2020 (UTC)

References

An analysis of real estate statistics news for the San Francisco Bay Area real estate market

An overview of real estate statistics news for one's San Francisco Bay Area real estate market for December 2010, reveals these trends and projections presented below – as reported by DataQuick.

Government-insured FHA loans, a well-known selection among first-time buyers, accounted for 23.7 percent of all houses invest in mortgages in December, down from 23.9 percent in November and 25.0 percent in December 2009.

Sales of higher-cost homes continue to suffer inside the credit shortage that struck three many years ago, making adjustable-rate mortgages (ARMs) and “jumbo” loans far tougher to obtain.

In December, 9.1 percent of the Bay Area’s house obtain loans have been ARMs, down from a revised 9.9 percent in November and up from 7.9 percent a year ago. The Bay Area’s average monthly ARM rate more than the last decade is 53 percent. ARMs hit a low of 3.0 percent in January 2009.

Jumbo loans, mortgages more than the old conforming limit of $417,000, accounted for 31.3 percent of last month’s pay for lending, down from a revised 33.4 percent in November, and up from 29.9 percent in December 2009, along with a post-housing-boom low of 17.1 percent in January 2009. However, prior to the August 2007 credit rating crunch, jumbos accounted for practically 60 percent in the Bay Area obtain loan market.

Last month absentee consumers – mostly investors – purchased 18.7 percent of all Bay Area homes sold, compared with 17.0 percent in November and 17.9 percent a year ago. A review of the real estate statistics news shows the monthly average mainly because 1988 at 16.5 percent.

Buyers who appeared for getting paid all dollars – accounted for 24.3 percent of sales in December, compared with 25.0 percent in November, 23.6 percent a year ago, and an average of 11.5 percent going back to 1988, as the real estate statistics news show.

Home flipping trended lower in December, once 2.1 percent with the homes that sold over an open market had been bought and re-sold within a six-month period. That was down from a flipping rate of 2.7 percent in November and 2.3 percent a year earlier. Last month’s flipping rates varied from 0.8 percent in San Francisco to 2.9 percent in Contra Costa County – as shown in the real estate statistics news.

The normal monthly mortgage payment that Bay Area consumers committed themselves to pay last month was $1,558, up from $1,504 in November, and down from $1,619 a year ago. Adjusted for inflation, last month’s payment was 41.6 percent below the frequent payment in spring 1989, the peak with the prior real estate cycle. It was 56.9 percent below the modern cycle’s peak in July 2007.

Foreclosure physical exercise remains high by historical standards but below peak levels reached more than the last couple of years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is more than average, DataQuick reported during the latest real estate statistics news. — Preceding unsigned comment added by Snsaher12 (talk • contribs) 14:46, 14 February 2021 (UTC)

References

Political Economy of Real Estate

Hello, I've added a section here about the political economy of real estate. Please let me know if there's any feedback on this. Thank you! Echang91 (talk) 13:15, 5 December 2023 (UTC)

Claim in "Demand for Housing" section?

in this section, there is a claim: "...as the price of housing services increase, household size will tend also to increase." Does this claim make sense? Basic economics dictates that as prices go up, demand falls, except if the commodity is a Verblen good, Giffen good or otherwise. It was tagged with a "Citation needed" template. I plan on removing it. TimothyforGod (talk) 22:35, 11 April 2024 (UTC)