Herding and reverse herding in US housing markets: new evidence from a metropolitan-level analysis

Pollock, M., Masaki, M. and Wu, Y. ORCID: https://orcid.org/0000-0003-0354-5658 (2024) Herding and reverse herding in US housing markets: new evidence from a metropolitan-level analysis. Regional Studies. ISSN 1360-0591 doi: 10.1080/00343404.2024.2325613

Abstract/Summary

This study is the first to examine herding and reverse herding in US metropolitan housing markets based on Zillow ZIP-level house price indices. Reverse herding is found to be more prevalent than herding, which differs markedly from equity markets and outcomes derived from less granular house price indices. The results suggest that the interaction between price appreciation and overconfidence may drive reverse herding. Also, herding and reverse herding show strong dependency on market conditions. Wide spatial and temporal variation in herding and reverse herding suggests the importance of local characteristics as determinants of the rationality of market responses.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/115556
Identification Number/DOI	10.1080/00343404.2024.2325613
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning
Uncontrolled Keywords	Herding; Reverse Herding; Housing; Overconfidence
Publisher	Taylor & Francis
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