Modelagem dos Preços de Imóveis Residenciais Paulistanos

Hedonic modeling has become a benchmark for pricing real assets withseveral intrinsic characteristics. This work tests also others dimensionsfor asset pricing: the quality of life in the housing neighborhood andmacroeconomic variables. The data is about the real estate market in SãoPaulo city from January 2001 to March 2008. The main results were: thelonger the maturity of mortgage financing, the larger the housing price, butdecreasing interest rate spread stimulate the real estate market, and theinteractions between the dummy for the boom period and either housingcharacteristics or bank interest rates spread show that the hedonic modelloses its relative importance for pricing, while market risk variablesbecome much more relevant. Thus, these new findings suggests that formodeling a house price index it is not sufficient to consider only averageprices or a hedonic approach, but both the market and credit risks aswell.