A house price index for the Netherlands: a review of the SPAR method

Conference paper (2007)

Authors

P. de Vries OLD Housing Systems
A.A.A. Marien OLD Support RES
J den Haan External organisation
E van der Wal External organisation
Research Group
OLD Housing Systems
More Info
expand_more

Published Date

2007

Language

Undefined/Unknown

Reuse Rights

Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

Research Group

OLD Housing Systems

Abstract

The so-called Sale Price Appraisol Ratio (SPAR) method has been applied in a number of
countries to construct house price indexes. The method, which uses ratios of transaction
prices and previous appraised values to build up an index, has been applied in New
Zealand, Sweden and Denmark. This paper discusses the statistical properties of the
SPAR price indexes and compares the SPAR with Repeat Sales Index created from the
same transactions data. Preliminary empirical results for the Netherlands covering a
period of over ten years are presented. As SPAR appears to have more to offer than the
more traditional methods, government agencies elsewhere would be well advised to
consider it when developing indexes for price movements in the housing stock.