This paper incorporates spatial and temporal dependence among housing transactions in predicting future house prices. We employ the spatial and temporal autoregressive model and structure the spatial and temporal weighting matrices as in Pace et al. (1998). We control for the time variation of...

In this paper, we make multi-step forecasts of the monthly growth rates of the prices and rents for flats in 26 largest German cities. Given the small time dimension, the forecasts are done in a panel-data format. In addition, we use panel models that account for spatial dependence between the...