Research On Quality Adjustment In The Housing Price Index

In the ancient and modern times, at home and abroad, housing is always theimportant composing parts of national wealth and resident family properties. It is notonly the necessity of production and life, but also a kind of assets or fortune. The housingprice not only relates to the production and life problems of general ordinary people, butalso has connections with the growth potentials and competitive powers of a city andeven influences the financial stability, macroscopic economic policies of a nation and soon. In past few years, with the formulation and continual improvement of our domesticurban housing markets, the housing price has shown the trend of increasingly hiking, theissues of urban housing prices have received wide attention and the fluctuation trendshave been the focused one.Price index is the comparative rate of the commodity price in temporal or spatialvariations, which reflects the pure price change. Usually, the total index of genericcommodities is obtained by weighting aggregation of elementary price index of a kind ora class of homogeneous commodities. In the reality, the quality of commodities changeswith time, which is very difficult to satisfy homogeneous conditions especially for thehousing, a kind of typical heterogeneous commodity. It needs utilize quality adjustments,to control sample product quality remains unchanged and measure the pure pricefluctuation. The paper introduced simple average method, stratification method andhedonic method separately from three main aspects of basic ideas, calculation methodsand domestic and foreign applications. It adopts the above three methods to calculate,compare and analyze the price indexes of second-hand housing samples in Baoding.Results demonstrated stratification compiled housing price indexes are more accurate andsimpler.The research conclusions were as follows:(1) According to the collected sample data and the main factors influencing thehousing price, stratification through the administrative district and structure area ofBaoding city, calculated the price index of single stratification and double stratification.(2) Using a log-linear hedonic housing price model, taking the statistical test,economic significance test and econometric test. Chain price indexes of hedonic methodfrom December2012to November2013were obtained.(3) Simple average method, stratification and hedonic method were analyzed and compared. Stratification is a kind of comprehensive method in an intermediate positionbetween simple average method and hedonic method, and the result is closer to the latterone, which can not only control the quality of samples, but also control the cost andtimeliness.