Exploring, modelling and predicting spatiotemporal variations in house prices

Fotheringham, A.S., Crespo, R. and Yao, J. (2015) Exploring, modelling and predicting spatiotemporal variations in house prices. Annals of Regional Science, 54(2), pp. 417-436. (doi:10.1007/s00168-015-0660-6)

Fotheringham, A.S., Crespo, R. and Yao, J. (2015) Exploring, modelling and predicting spatiotemporal variations in house prices. Annals of Regional Science, 54(2), pp. 417-436. (doi:10.1007/s00168-015-0660-6)

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Publisher's URL: http://dx.doi.org/10.1007/s00168-015-0660-6

Abstract

Hedonic price modelling has long been a powerful tool to estimate house prices in the real estate market. Increasingly, traditional global hedonic price models that largely ignore spatial effects are being superseded by models that deal with spatial dependency and spatial heterogeneity. In addition, many novel methods integrating spatial economics, statistics and geographical information science (GIScience) have been developed recently to incorporate temporal effects into hedonic house price modelling. Here, a local spatial modelling technique, geographically weighted regression (GWR), which accounts for spatial heterogeneity in housing utility functions is applied to a 19-year set of house price data in London (1980–1998) in order to explore spatiotemporal variations in the determinants of house prices. Further, based on the local parameter estimates derived from GWR, a new method integrating GWR and time series (TS) forecasting techniques, GWR–TS, is proposed to predict future local parameters and thus future house prices. The results obtained from GWR demonstrate variations in local parameter estimates over both space and time. The forecasted future values of local estimates as well as house prices indicate that the proposed GWR–TS method is a useful addition to hedonic price modelling.

Item Type:Articles
Keywords:Hedonic price models; GWR; Spatiotemporal modelling; GIS; C3; R3
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Yao, Dr Jing
Authors: Fotheringham, A.S., Crespo, R., and Yao, J.
College/School:College of Social Sciences > School of Social and Political Sciences > Urban Studies
Journal Name:Annals of Regional Science
Publisher:Springer Berlin Heidelberg
ISSN:0570-1864
ISSN (Online):1432-0592

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