Asset Price Bubbles: Housing Markets Data
|Author:||Mgr. Mrhal Jakub|
|Year:||2013 - summer|
|Leaders:|| prof. Ing. Oldřich Dědek CSc.
|Work type:|| Doctoral
|Awards and prizes:|
|Abstract:||This study deals with asset price bubbles and possible approaches for their identification.
Afterwards focuses on real estate pricing mechanism and defines user cost or
alternatively imputed rent as sum of all cash-flows connected to owning real estate
property. These cash-flows consist of capital cost, depreciation rate, personal income and
property taxes, additional asset risk and expected capital gain. Then we construct
loglinear regression models for estimating recent price levels of purchase and renting for
several segments on the real estate market. These estimated price levels after that
compare with user costs. Comparison provides us with information about potential
mispricing on Prague real estate market in examined segments. Study concludes that
from long run point of view, all subjected segments are slightly underpriced.