Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208362
Authors: 
Le Roux, Julien
Roma, Moreno
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper No. 2328
Abstract: 
Using microdata from the second wave of the Household Finance and Consumption Survey, we investigate the accuracy of property values estimated by homeowners - so called "self-assessed" house prices - and explore the drivers of possible deviations of these prices from official hedonic house price indices. We find evidence that euro area homeowners overestimate the value of their properties by around 9%. Across the largest euro area countries, the overestimation lies in a range between 3.2% in Germany and 22% in Italy. Household characteristics, including the level of indebtedness, appear to explain significant discrepancies between hedonic and self-assessed house price indices, while the limited available data related to property characteristics are generally not affecting this gap. For the euro area, we find that higher self-assessed house prices are associated with a mild increase in consumption expenditures.
Subjects: 
house prices
micro data
under/overvaluation
wealth effects
quantile regressions
JEL: 
E31
C21
O18
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3897-6
Document Type: 
Working Paper

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