The purpose of this study is to examine if the sale price of a real property may be influenced by which part of the year the sale occurs. Generally, it is perceived that spring and summer are the best times to relocate and purchase a house. Hence there is an expected increase in demand during this part of the year that would possibly increase the price. This study looks at the sales data from Arlington Area 83-1 near UTA for the year 2008 to examine this relationship. The study does not find any significant relationship between the property prices and seasonality.
The study further extends the hypothesis by looking at the interaction between seasonality and the property type and their combined effect on property prices. Single family residences are in high demand during late spring and summer as families tend to relocate in tandem with the school year. The study interestingly finds significant relationship between property prices and the interaction between seasonality and property type. The results indicate that for single family residences selling in spring and summer, the property sells for a premium of $6808 after controlling for other hedonic variables like size, age, etc.
Posts
No comments:
Post a Comment