School Seminar | The Formation of Subjective House Price Expectations by Joachim Winter | Ludwig Maximilian University of Munich – School of Economics School Seminar | The Formation of Subjective House Price Expectations by Joachim Winter | Ludwig Maximilian University of Munich – School of Economics

School Seminar | The Formation of Subjective House Price Expectations by Joachim Winter | Ludwig Maximilian University of Munich

School of Economics

 Invites you to a

School seminar presented by

Joachim Winter

(Ludwig Maximilian University of Munich)

The Formation of Subjective House Price Expectations

 

Co-authors:

Sarah Kiesl-Reiter – IFO Institute

Melanie Lührmann – University of London

Jonathan Shaw – Institute for Fiscal Studies

 

Thursday 7 March 2024

11.00pm – 12.30pm

 

Seminar Room 650
A02 Social Sciences Building

Camperdown Campus
The University of Sydney NSW 2006

 

Subjective house price expectations drive individual housing choices and market dynamics.

We study the formation of subjective expectations about local house prices using

novel survey data from Britain, a country with high homeownership rates and widely

varying local housing dynamics. There is a substantial and heterogeneous perception

gap and individuals extrapolate strongly from perceived but not from realized past price

changes. In addition, expectations are predicted by wider, easily observable measures of

local economic conditions, especially among individuals with low financial sophistication.

Individuals residing in local housing markets where past prices are less informative or less

observable rely more strongly on local economic conditions in their belief formation. Our

results emphasize the role of heterogeneity in expectations formation processes, and their

underlying information set.

For further information contact: School seminar series coordinators
Arezou Zaresani (arezou.zaresani@sydney.edu.au)

& Brendan Beare (brendan.beare@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar

Date

Feb 21 2024
Expired!

Time

8:00 am - 6:00 pm

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