Download or read book Liquidity and Pricing Biases in the Real Estate Market written by Zhenguo Lin and published by . This book was released on 2004 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk in the Global Real Estate Market written by Mike C. I. Nwogugu and published by John Wiley & Sons. This book was released on 2012-01-26 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essential reading for professional investors, risk managers, regulators, central bankers, and real estate professionals, Risk in the Global Real Estate Market: International Risk Regulation, Mechanism Design, Foreclosures, Title Systems, and REITs takes an international look at the ways in which U.S.-style constitutional laws, financial laws, and real estate laws in various countries affect global economics and risk; and analyzes specific constraints that deter market development such as Asset Liability Matching, inappropriate financial products, land title systems, inefficient constitutions and human biases. The sub-prime mortgage crisis (that began around 2006) and the Global Financial Crisis of 2007–2010 disrupted the economies of various countries and exposed many of the psychological, social, and economic problems inherent in the legal/risk infrastructure for mortgages, land title systems, REITs, securitization, and pensions. In this remarkable new book, Michael Nwogugu explains how these processes and statutes are unconstitutional and inefficient, and how they influence demand for housing, real estate prices, retirement savings, household wealth, consumer disposable income, marriage opportunities, job markets, crime, and regional economic growth. The resulting major economic and public health problems have continued to reduce the quality-of-life of nations, and continue to cause permanent declines in wealth, increases in crime and delinquency, high divorce rates, depression, and inadequate job creation, among other problems. The book examines a range of fields—including mechanism design, psychology, risk finance, and corporate governance; and emphasizes Constitutional economics as a distinct dimension of risk analysis. Risk in the Global Real Estate Market makes a compelling case about how constitutional torts increase information asymmetry, transaction costs, agency problems, and compliance costs, as well as inefficiency in real estate transactions. These problems, the book argues, are not unique to the United States, but also affect Commonwealth countries and other nations that have developed regulations that are similar to, or are based on U.S. commercial, securities, and or constitutional laws. Risk in the Global Real Estate Market presents a novel analysis of the sub-prime crisis (that first began in 2006), the failure of securitization (CMBS/MBS) markets, the Global Financial Crisis, and socio-economic problems caused by traditional mortgages and securitization. The book reveals that many of the statutes and processes that define mortgages, foreclosures, securitization, and REITs in the United States (and many common-law countries and nations that have adopted American-style real estate regulations) are fundamentally unconstitutional and inefficient, and have lasting negative effects on consumer psychology, the demand for real estate, price discovery in property markets, economic growth, and quality of life. The book examines the nature of constitutional torts and property rights as the foundation for business transactions and economic growth within the context of risk regulation, interstate commerce, takings, and legislation. Risk in the Global Real Estate Market introduces new theories of consumer psychology and institutional dynamics in real estate transactions; presents new theories of takings, and also surveys psychology/psychiatry studies (based on data from various countries) that confirm the harmful effects of mortgages, securitization, and foreclosures. Using elements of mechanism design, Michael Nwogugu develops new efficient financial products (Mortgage-Alternatives products), and presents a policy framework for a unified “Mortgage-Alternatives” market for the CEE/CIS region and China. He also explains why Asset Liability Matching hinders lending, capital formation and risk management, especially in developing countries.

Download or read book Liquidity Creation and Financial Fragility written by Christian Weistroffer and published by Logos Verlag Berlin GmbH. This book was released on 2010 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: Open-end real estate funds (OEREFs) are the predominant vehicle in Germany for channeling private capital flows into commercial real estate markets. They transform longer-term investment projects into daily redeemable claims. To the extent that OEREFs stand ready to both issue new shares and redeem outstanding ones on a daily basis they provide valuable liquidity transformation. At the same time, they become susceptible to run phenomena. This dissertation analyzes the inherent fragility of open-end real estate funds in light of the German open-end fund crisis of 2005/06. The dissertation comprises three papers. The first paper explores how fund performance and other factors influenced capital flows into OEREFs before, during and after the German open-end fund crisis of 2005/06. The second paper looks at the valuation practice of OEREFs and assesses whether funds have suffered from a valuation problem. It finds evidence in support of the view that systematic deviations of appraised values from prices achieved in the market were at the heart of the 2005/06 German open-end fund crisis. The third paper relates findings from banking theory to OEREFs. It explores under which conditions the open-end fund contract resembles a demand deposit contract that is prone not only to panics but also to fundamental runs. The dissertation concludes by discussing policy options to mitigate the run problem.

Download or read book Time Variation of Liquidity in the Private Real Estate Market written by Jim Clayton and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper characterizes the behavior of and evaluates competing explanations for time variation in private real estate market liquidity. In the first, sellers base their estimates of value on observations of signals from the market. The second incorporates the option value of waiting or the opportunity cost of not transacting into seller's optimal valuation strategy. In the third, we allow for the possibility of investors who are not fully rational in the sense that they trade on market sentiment and we link market-wide liquidity to investor sentiment. In this model, measures of aggregate liquidity act as an indicator of the relative presence (or absence) of sentiment-based traders in the market and therefore the divergence of asset price from fundamental value. Empirical findings are generally consistent with models of optimal valuation with rational updating and provide support for the opportunity cost approach.

Download or read book Liquidity and Information Asymmetry in the Real Estate Market written by Siu Kei Wong and published by . This book was released on 2015 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: George Akerlof's asymmetric information theory explains why lemons are rarely, if at all, transacted. We extend his theory to explain liquidity in the second-hand real estate market. The idea is to decompose real estate asset into two components: Land and the building structure. While sellers may know more about the quality of their structure, information on land, predominantly its locational attributes, is generally much more transparent. Without assuming any credit constraints or loss aversion behaviour, our model shows that 1) real estate liquidity depends on the relative importance of land and building value; 2) there is a positive relationship between real estate prices and trading volume when land value is more volatile than building value; 3) the positive relationship is stronger when most of the property value comes from the structure; and 4) while sales of new development may pull away the demand from second-hand real estate, such a substitution effect is weaker when the land price is high. These four implications have been confirmed with panel data analysis using Hong Kong's housing transactions over the period 1992-2008 across 50 districts.

Download or read book Proceedings of the 7th International Conference on Economic Management and Green Development written by Xiaolong Li and published by Springer Nature. This book was released on with total page 2095 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Liquidity Risk and Asset Pricing in the Housing Market written by Xian Zheng and published by Open Dissertation Press. This book was released on 2017-01-26 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Liquidity Risk and Asset Pricing in the Housing Market" by Xian, Zheng, 郑贤, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: The role of liquidity in asset pricing model has attracted much attention in recent financial studies; however there is a paucity of literature with respect to liquidity risk and asset pricing in the direct housing market. The housing market is characterized by costly searching, inelastic supply and short-sale constraints. It is expected that the housing market should incur more significant illiquid effects, since it is much more illiquid than stock market. Motivated by this intuition, this thesis aims to explore 1) whether and to what extent liquidity can explain variations in over-time/crosssectional housing returns; and 2) whether liquidity factor plays a role in explaining the second moment (i.e. volatility) of housing price. We employ the panel regression and Fama-MacBeth two-stage procedure to investigate over-time and cross-sectional relations between liquidity and housing return. Liquidity asset pricing theory suggests that assets with lower degree of liquidity offer higher expected returns. Consistent with this prediction, the panel regression results suggest that housing return is a decreasing function of liquidity in previous year, while it is positively relative to contemporary liquidity shocks. For the cross-sectional asset pricing tests, housing estate specific betas are estimated using rolling time-series regressions of a three-factor asset pricing model. We investigate the proposition that housing estates with greater return sensitivity to market liquidity earns higher expected return. Using a disaggregate dataset of 55 popular housing estates, we find (1) both market liquidity beta and housing estate specific liquidity risk are significantly priced in the cross-sectional housing estate returns, implying that cross-sectional differences in estate premium partially represent the liquidity premium. (2) The market beta, sentiment beta and market liquidity beta explain 14.36% of variations in cross-sectional estate returns. The results are robust across different specifications. (3) Investors are less willing to bear liquidity risk during the down markets, which shed new light on the positive price-volume correlation. These findings complement the cross-sectional liquidity-return relationship in the financial literature. Measuring housing price volatility is fundamental to the study of the dynamics of housing price risk. We investigate the effects of liquidity on housing price volatility in different housing classes (classified by size of the housing unit according to the Rating and Valuation Department's definitions). Housing price volatility is measured as the conditional variance of a GARCH model under the Adaptive Expectations framework. We reveal that volatility transmits from small housing units to large housing units, which indirectly supports the trade-up effect in previous literature. Besides, the starter and high-end housing classes are extraordinarily sensitive to negative and positive liquidity shocks respectively. Consistent with the friction search theory, we find that the pricing errors are alleviated as the trading volume increases, since the valuated price tends to be more accurate as more information arrives. Lastly, the variance decomposition and impulse response results imply that the positive liquidity shock accounts for a large proportion of variations in housing volatility. DOI: 10.5353/th_b5108650 Subjects: Housing - Prices Liquidity (Economics

Download or read book The Real Estate Market written by United States. Congress. Senate. Committee on Finance and published by . This book was released on 2008 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Asset Pricing Real Estate and Public Finance over the Crisis written by A. Carretta and published by Springer. This book was released on 2013-02-03 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: The current financial crisis started from the US real estate market and after, though the increase of risk premium requested by investors and due to the lack of liquidity of all financial markets, it became a world financial crisis. A detailed analysis during the crisis focuses attention on asset management, the real estate and public sector.

Download or read book Trading Volume and Liquidity Premium in the Hong Kong Housing Market written by Hon-Ho Kwok and published by Open Dissertation Press. This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Trading Volume and Liquidity Premium in the Hong Kong Housing Market" by Hon-ho, Kwok, 郭漢豪, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of thesis entitled "Trading Volume and Liquidity Premium in the Hong Kong Housing Market" Submitted by Kwok Hon Ho for the degree of Master of Philosophy at The University of Hong Kong in Aug 2006 Various liquidity measures, such as the time on the market and trading volume, appear in the economics and finance literature. Since prices and liquidities are normally the optimal choices of asset owners, these liquidity measures are endogenous. Because of the endogeneity of liquidity measures, the ordinary least squares estimator is biased and inconsistent. The ordinary least squares estimate of liquidity effect is expected to be upward biased because of the positive correlation between price and trading volume. In this study, the instrument-variable estimation is proposed to handle the endogeneity problem. The proposed instrument is the size of the housing development, which can be expressed in terms of the number of units developed in the development project. The upward bias of the ordinary least squares estimates and the endogeneity of trading volume are supported by the evidence from the Hong Kong housing market. The choice of instrument is motivated by the conjectured size effects of housing development in Hong Kong. Holding the houses' attributes constant, residential units in Hong Kong are expected to be of higher prices and higher liquidities if the units are developed in large scale development projects or located in large housing estates. Empirical results show that significant size effects do exist in Hong Kong. The estimated size effects on price and liquidity are tremendous. The size effects can be explained by a model based on search friction. DOI: 10.5353/th_b3688190 Subjects: Liquidity (Economics) Housing development - China - Hong Kong Housing - Prices - China - Hong Kong

Download or read book Commercial Real Estate written by David Geltner and published by South Western Educational Publishing. This book was released on 2014 with total page 826 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rev. ed. of: Commercial real estate analysis and investments / David M. Geltner ... [et al.]. Mason, Ohio: Thompson South-Western, c2007.

Download or read book Cash in on the Coming Real Estate Crash written by David J. Decker and published by John Wiley & Sons. This book was released on 2006-04-03 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: After five years of skyrocketing real estate prices, fueled by low interest rates, aggressive lenders, and relative economic prosperity, something has to give. Thanks to nonstop recent press coverage of America's overheated housing market, you are probably wary of buying your next property at the top of the market. So what should you do? Whether you're an individual investor or a homeowner, Cash In on the Coming Real Estate Crash shows you how to gauge the risk of a housing bust in your own local market. More importantly, it shows you how to hedge against a crash and position yourself to profit if the bubble bursts. Critical advice covers: * Identifying signs of an impending collapse * Balancing your real estate portfolio so a crash doesn't wipe you out * Conservative financing strategies * Developing a vision for value in any market * Buying low after the bubble bursts * Knowing when to sell * And many more strategies for making money when the real estate market collapses Peppered with true stories of how homeowners, small investors, and bona? fide real estate tycoons handled and mishandled past crashes, Cash In on the Coming Real Estate Crash is the resource you need to prepare for the comingdownturn, weather the storm, and emerge on the other side stronger than ever.

Download or read book Global Real Estate Capital Markets written by Alex Moss and published by Taylor & Francis. This book was released on 2024-07-16 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book unravels the complex mechanisms involved in global real estate capital markets, enabling the reader to understand how they have grown and evolved, how they function, what determines market pricing, and how the public and private debt and equity markets are linked to each other. Using their extensive professional experience, the authors combine a structured, rigorous understanding of the theory and academic evidence behind the main concepts with practical examples, applications, case studies, quizzes and online resources. The book will enable readers to understand for example: · Why share prices of real estate companies can differ dramatically from the underlying value of the assets · The differing investment objectives of different categories of investor and how this influences share prices and corporate funding decisions · How sell-side analysts make their recommendations · How buy-side analysts decide which sectors, funds and stocks to allocate capital to · And how ESG considerations are relevant to capital market pricing. The book is designed not just for advanced real estate students, but also for global finance courses, Executive Education short courses and as a primer for new entrants to the sector. It is key reading for the following groups: · Property professionals working for a listed company wanting to understand the relationship between their underlying business and the stock market valuation · Real Estate Private Equity teams looking to understand the valuation disconnect between public and private markets and arbitrage the Parallel Asset Pricing model · Equity/Multi asset/Property analysts/fund managers who need to understand the specific characteristics of real estate vs the other ten equity sectors and understand when to increase and decrease sector weightings. Online materials for this book can be found on the Routledge Resource website at https://resourcecentre.routledge.com/books/9781032288017.

Download or read book Market Distortions when Agents are Better Informed written by Steven D. Levitt and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Agents are often better informed than the clients who hire them and may exploit this informational advantage. Real-estate agents, who know much more about the housing market than the typical homeowner, are one example. Because real estate agents receive only a small share of the incremental profit when a house sells for a higher value, there is an incentive for them to convince their clients to sell their houses too cheaply and too quickly. We test these predictions by comparing home sales in which real estate agents are hired by others to sell a home to instances in which a real estate agent sells his or her own home. In the former case, the agent has distorted incentives; in the latter case, the agent wants to pursue the first-best. Consistent with the theory, we find homes owned by real estate agents sell for about 3.7 percent more than other houses and stay on the market about 9.5 days longer, even after controlling for a wide range of housing characteristics. Situations in which the agent's informational advantage is larger lead to even greater distortions"--National Bureau of Economic Research web site.

Download or read book Handbook of Regional and Urban Economics vol 5B written by Gilles Duranton and published by Elsevier. This book was released on 2015-05-15 with total page 967 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in methodologies, agglomeration, and a range of applied issues have characterized recent advances in regional and urban studies. Volume 5 concentrates on these developments while treating traditional subjects such as housing, the costs and benefits of cities, and policy issues beyond regional inequalities. Contributors make a habit of combining theory and empirics in each chapter, guiding research amid a trend in applied economics towards structural and quasi-experimental approaches. Clearly distinguished from the New Economic Geography covered by Volume 4, these articles feature an international approach that positions recent advances within the discipline of economics and society at large. Editors are recognized as leaders and can attract an international list of contributors Regional and urban studies interest economists in many subdisciplines, such as labor, development, and public economics Table of contents combines theoretical and applied subjects, ensuring broad appeal to readers

Download or read book Commercial and Residential Real Estate Market Liquidity written by Dorinth Willem van Dijk and published by . This book was released on 2019 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Liquidity Risk and Asset Pricing in the Housing Market written by Xian Zheng (Ph. D.) and published by . This book was released on 2013 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: