Handbook of Economic Forecasting

Chapter 9

Forecasting Real Estate Prices

Eric Ghysels*, Alberto Plazzi^†, Rossen Valkanov^‡ and Walter Torous^**,     ^*UNC, Department of Economics and Kenan-Flagler Business School, Gardner Hall, Chapel Hill, NC 27599-3305, USA, ^†University of Lugano and Swiss Finance Institute, Institute of Finance, Via Buffi 13, Lugano 6904, Switzerland, ^‡Rady School of Management, UCSD, Pepper Canyon Hall, 9500 Gilman Drive, La Jolla, CA 92093, USA, ^**The Center for Real Estate, Massachusetts Institute of Technology, Cambridge, MA 02139, USA

Abstract

This chapter reviews the evidence of predictability in U.S. residential and commercial real estate markets. First, we highlight the main methodologies used in the construction of real estate indices, their underlying ...