A Note on the Estimation of the Degree of Over- Or Under-Pricing of Housing Markets Relative to Their Long-Term Pricing Trend.

This note outlines the estimation methodology of the degree of over- or under-pricing for a given housing market relative to its long-term pricing trend. The purpose of this effort is to provide buyers, sellers, real estate professionals, and policy makers a tool that estimates the premium (over-pricing) or discount (under-pricing) a local market is experiencing at a given moment. In general, this model is designed more for greater public rather than academic consumption. [ABSTRACT FROM AUTHOR]