The Predictability of REIT Returns and Market Segmentatio

Recent research suggests that real estate returns are more predictable than the returns of other assets and that the real estate market is segmented from the general stock market. This study examines these two issues empirically using a multifactor asset pricing model that allows for time-varying risk premiums. The results indicate that, in a general two-factor asset pricing framework, the REIT market is integrated with the general stock market. Furthermore, no evidence can be found that REIT returns are more predictable than the returns of other stocks.

Residential Appraisal and the Lending Process: A Survey of Issues

This article surveys mainly academic literature for issues concerning the use of appraisals in the residential lending process. The development of appraisal methodologies is reviewed, and the strengths and weaknesses of various appraisal techniques are assessed. Issues relating to the use of neighborhood characteristics in appraisals for lending purposes are also explored. Finally, institutional incentives that give rise to biased and self-serving appraisals and possible solutions to these incentive problems are examined.

Pricing Factors in Real Estate Markets: A Simple Preference Based Approach

Conventional wisdom tells us that the price level of properties should be supported by the rent they receive. This paper examines the pricing factors of properties by analyzing how individuals allocate their income to housing consumption and other goods, which in turn become the rent (or implicit rent) to support property values. Our model’s results can explain several puzzling observations in property markets, including why the variance of property appreciation rates is much higher than that of income growth rates in the same area.Preference-based model, pricing factors, property appreciation, property markets

Local transport measurements at mesoscopic length scales using scanning tunneling potentiometry

Under mesoscopic conditions, the transport potential on a thin film with current is theoretically expected to bear spatial variation due to quantum interference. Scanning tunneling potentiometry is the ideal tool to investigate such variation, by virtue of its high spatial resolution. We report in this {\it Letter} the first detailed measurement of transport potential under mesoscopic conditions. Epitaxial graphene at a temperature of 17K was chosen as the initial system for study because the characteristic transport length scales in this material are relatively large. Tip jumping artifacts are a major possible contribution to systematic errors; and we mitigate such problems by using custom-made slender and sharp tips manufactured by focussed ion beam. In our data, we observe residual resistivity dipoles associated with topoographical defects, and local peaks and dips in the potential that are not associated with topographical defects

A Rational Explanation for Boom-and-Bust Price Patterns in Real Estate Markets

This paper develops a stylized model to provide a rational explanation for the boom-and-bust price movement pattern that we frequently observe in the real world. Our stylized model indicates that there are three conditions to form a boom-and-bust price pattern in a community: a move-in of high income residents, wide income gap between new and existing residents, and supply process that leads to an inventory buildup. It seems that, based on these three conditions, China is more likely to experience a boom-and-bust price movement pattern than a developed country with a more mature and less vibrant economy.Real Estate Cycles; Boom-and-Bust; Supply Decision; Moving Costs

Estimating Property Values by Replication: An Alternative to the Traditional Grid and Regression Methods

This paper proposes and develops a replication method for estimating property values, in which optimal weights of comparable property attributes that best duplicate the subject property are determined. In a setting where the number of comparables is large compared to the number of attributes, replication weakly outperforms traditional general least squares regression by making use of potential correlations in the error structure. A similar result obtains in comparison to the grid method, which may suffer from subjective price adjustment factors. The replication method suggests using a large sample regression analysis to obtain the functional form of the error variance-covariance, and then replicating the subject with a smaller, attribute-close set of comparable properties.

Integrated Chest Image Analysis System "BU-MIA"

We introduce "BU-MIA," a Medical Image Analysis system that integrates various advanced chest image analysis methods for detection, estimation, segmentation, and registration. BU-MIA evaluates repeated computed tomography (CT) scans of the same patient to facilitate identification and evaluation of pulmonary nodules for interval growth. It provides a user-friendly graphical user interface with a number of interaction tools for development, evaluation, and validation of chest image analysis methods. The structures that BU-MIA processes include the thorax, lungs, and trachea, pulmonary structures, such as lobes, fissures, nodules, and vessels, and bones, such as sternum, vertebrae, and ribs

Full Orientability of the Square of a Cycle

Let D be an acyclic orientation of a simple graph G. An arc of D is called dependent if its reversal creates a directed cycle. Let d(D) denote the number of dependent arcs in D. Define m and M to be the minimum and the maximum number of d(D) over all acyclic orientations D of G. We call G fully orientable if G has an acyclic orientation with exactly k dependent arcs for every k satisfying m <= k <= M. In this paper, we prove that the square of a cycle C_n of length n is fully orientable except n=6.Comment: 7 pages, accepted by Ars Combinatoria on May 26, 201

Over-Confidence and Cycles in Real Estate Markets: Cases in Hong Kong and Asia

Studies on the calibration of subjective probabilities find that people tend to over-estimate the precision of their knowledge. In this paper we develop a semi-rational model and apply it to the real estate markets in Hong Kong and other Asian countries. The key point is that a person is rational about her/his private information until her/his private information is confirmed by a clearly defined market signal. Using a pre-sale as a mechanism of updating a developer's beliefs, this paper analyzes the impact of over-confidence on overbuilding and cycles in real estate markets. Our finding indicates that a pre-sale activity will increase the magnitude of over-building and over-confidence will increase the volatility in real estate markets. Our model also has implications to the well-established literature dealing with the issue of over-capacity in many industrial sectors.