Economy of Land and Real Estate: Prices Evolution

This lecture discusses the erratic evolution of land prices, emphasizing the statistical artifacts and the sensitivity of growth rates. It analyzes the quadratic trend in land prices, using specific data points to illustrate the general price evolution. The lecture also covers smoothed median prices for building land in Zurich, average mortgage interest rates, and price growth rates. The significant price increase from 2006 to 2007 is highlighted, leading to a discussion on the model's limitations in predicting land price changes. Anticipations' role in a self-reinforcing process is explored, and the lecture concludes by addressing the challenges in defining the rate of capital gain. Future topics include refining the model by incorporating anticipation concepts.