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Title: Resale Housing Price Determinants: A Case Study of Canada 2000 – 2009
Authors: Xu, Peiwen
Advisors: Shin, Hyun S.
Department: Economics
Class Year: 2013
Abstract: This thesis studies the determinants of selling prices of existing residential properties in Canada from 2000 to 2009 using data from a nation-wide survey conducted annually at the household level – the Survey of Household Spending (SHS).I built the regression models based on survey of existing studies, and used the SHS data for regressions. I found that after controlling for the individual characteristics of households, the time dummy and province dummy variables generate significant results in both the first and the second models. Their coefficients are consistent with the trend observed in data taken from real life events. The hedonic variables of the dwellings also generated significant and reasonable results, especially the ones measuring the population of the neighborhood, age of the dwelling, and also number of bathrooms in the dwelling. For the household related characteristics, I found that household income per person exerts a positive effect on the selling prices of existing houses, keeping all else fixed. The proportion of the household’s expenditure on food items increases the selling prices, but the household income needs to be included for its effect to be significant. The household’s regular property tax payments also exhibit positive relationship with the selling prices. For the variable of tenure status of a household, which is owning their dwelling with or without mortgage in this paper, I obtained some curious results that required further examination. Owning the dwelling with mortgage decreases its selling price at an extremely significant rate. I designed a second model with an extra set of demographic variables built in to test a hypothesis following analysis of model one results. In the second model I tested out the hypothesis that the tenure variable has absorbed other factors that decrease the selling prices, such as the age cohort effect on the condition of the house. The results from the second model supported the hypothesis, and also shed light on the impact of underlying demographic structure on housing prices.
Extent: 74 pages
Access Restrictions: Walk-in Access. This thesis can only be viewed on computer terminals at the Mudd Manuscript Library.
Type of Material: Princeton University Senior Theses
Language: en_US
Appears in Collections:Economics, 1927-2017

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