2012
MAS 2012 Proceeding
Simulation of house prices for improved land valuation
Authors: Terry Bossomaier, Zahid Islam, Rod Duncan, Junbin Gao
Abstract
?The housing market is an important part of most economies in the developed world, but is also a significant factor in setting land valuation. Thus good housing models serve multiple purposes. Many studies use powerful statistical techniques to study pricing, but these are not so effective for handling large scale social or demographic shifts. Agent based modelling (ABM) is more flexible and therefore this paper describes a housing market simulation using ABM. A standard economic model is used for estimating utility, combined with a second price auction model and a decision forest for linking house features to price estimates at the beginning. Simulations are presented for a range of market temperatures, revealing different levels of price inflation. Index Terms?house price, agent based model, deci- sion tree
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