Journal articles
Year
2007
Abstract
This article adresses the issue of building a repeat sales index based on explanatory factors. A general and robust model based on Principal Components Analysis (PCA) is applied to the Paris residential market over the 1973-2001 period, using the CD-BIEN database. The PCA index for Paris is estimated and its characteristics and robustness are analyzed depending on estimation period, choice of observations, periodicity and reversibility. It is also compared to a standard repeat sales index (WRS) which was estimated using the same data. Contrary to the WRS index, the PCA index can be efficiently used to forecast apartment prices.
BARONI, M., BARTHELEMY, F. et MOKRANE, M. (2007). A PCA Factor Repeat Sales Index for Apartment Prices in Paris. Journal of Real Estate Research, pp. 137-158.