Changes
in prices of homes are hypothesized as correlated with the times of their sale
and resale and the attributes of their dwelling unit and neighbourhood and
those of neighbouring homes. They may also be correlated with the occurrences
of events inside the neighbourhoods caused by the activities of individuals and organizations outside the
neighbourhoods, such as whether the local economy is in a recession or has a
high unemployment rate. Calibrated hybrid housing price models predict
precipitous decreases in house prices of approximately 2900 sold and resold
homes in two inner-city neighbourhoodsin
Windsor, Ontario, during those events since 1981 or 1986. Overall modest
predicted percentage increases in houses’ prices during more than 30 years
therefore subsumed periods of inner-city neighbourhood deterioration in dispersed locations of unimproved and disimproved
homes. Compensatory predictions however are of increasing prices for minorities
of homes with improvements to several attributes of the dwelling unit and
neighbourhood.
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