Staff Memo
House price prediction using daily news data
- Author:
- Sara Jahr Kirkeby and Vegard Høghaug Larsen
- Series:
- Staff Memo
- Number:
- 5/2021
Abstract
We investigate whether information from news articles could improve predictions of house price inflation at a short forecast horizon. The Covid-19 pandemic led to a shutdown of the Norwegian economy on 12 March 2020. Large economic fluctuations posed challenges for models used to forecast economic developments. Our results indicate that news data contain valuable information about the direction of the housing market in periods of economic distress.
Staff Memo inneholder utredninger og dokumentasjon skrevet av Norges Banks ansatte og andre forfattere tilknyttet Norges Bank. Synspunkter og konklusjoner i arbeidene er ikke nødvendigvis representative for Norges Bank.
ISSN 1504-2596 (online)