House price prediction using daily news data
- Sara Jahr Kirkeby and Vegard Høghaug Larsen
- Staff Memo
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 Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.
ISSN 1504-2596 (online)