<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The specific character of the real estate market is the reason why observations of transaction prices seen as statistical variables are taken in a non-standard way. In the traditional approach each time period or specific moments of time are attributed with one observation of a studied variable per one object. In the case of the real estate market, this is not possible since transactions relate to different objects, i.e., properties, and occur at irregular, or even random, moments. This is why traditional methods used to examine the dynamics of economic phenomena must be adapted to specific conditions on the real estate market. Keeping that in mind, the aim of this paper is to adapt classical statistical examination methods of dynamics to specific conditions of the real estate market followed by the actual examination of the dynamics of real estate prices in three sub-segments of the housing market in Szczecin. On its basis, the authors evaluate various methods of examining real estate price dynamics in terms of their applicability in real estate appraisal procedures and, in a broader perspective, present characteristic phenomena that can be observed on the real estate market.</p></abstract>

The specific character of the real estate market is the reason why observations of transaction prices seen as statistical variables are taken in a non-standard way. In the traditional approach each time period or specific moments of time are attributed with one observation of a studied variable per one object. In the case of the real estate market, this is not possible since transactions relate to different objects, i.e., properties, and occur at irregular, or even random, moments. This is why traditional methods used to examine the dynamics of economic phenomena must be adapted to specific conditions on the real estate market. Keeping that in mind, the aim of this paper is to adapt classical statistical examination methods of dynamics to specific conditions of the real estate market followed by the actual examination of the dynamics of real estate prices in three sub-segments of the housing market in Szczecin. On its basis, the authors evaluate various methods of examining real estate price dynamics in terms of their applicability in real estate appraisal procedures and, in a broader perspective, present characteristic phenomena that can be observed on the real estate market.

Evaluation of the Applicability of Statistical Methods in Studies on Price Dynamics on the Real Estate Market

Department of Econometrics and Statistics Szczecin University

Real Estate Management and Valuation

The specific character of the real estate market is the reason why observations of transaction prices seen as statistical variables are taken in a non-standard...

Evaluation of the Applicability of Statistical Methods in Studies on Price Dynamics on the Real Estate Market

Published Online: May 16, 2013

Page range: 49 - 58

DOI: https://doi.org/10.2478/remav-2013-0007

Keywords
real estate market, prices, dynamics

This content is open access.

Evaluation of the Applicability of Statistical Methods in Studies on Price Dynamics on the Real Estate Market

Published Online: May 16, 2013

Page range: 49 - 58

DOI: https://doi.org/10.2478/remav-2013-0007

Keywordsreal estate market, prices, dynamics

This content is open access.

Keywords
real estate market, prices, dynamics