preview

Sales Value Of A Street Case Study

Decent Essays

Firstly, the coefficients outputs are negative at every proximity. This means that with the presence of a high-voltage power line, the sales value of a house reduces by the respective amounts indicated above. As with the linear regression models, the values in this table show that the most impacted proximity is 200 meters while the least is 500 meters. The negative impact on sales price also diminishes beginning at 200 meters. Moreover, the t Stat outputs are negative because of the decreasing effect on value that high-voltage power lines have. Based on a 95% confidence interval, the t Stat value means the independent variable is significant if less than or more than -1.96 and 1.96 respectively. In this case, if the t Stat is significant …show more content…

This proximity is consistent with the regression models and descriptive statistics. Another similarity is found with the study by Sally Sims and Peter Dent (2005). Their results showed a negative impact on value at a 99% confidence level and that that the negative impacts are negligible when proximity is greater than 250 metres. There is a slight difference in that their housing value was most affected when within 100 metres. This could be explained by other variables, or simply the fact that their dataset focuses on Scotland instead of the Greater Toronto Area. Nevertheless, these similarities and differences are beneficial towards understanding key factors of housing value. Moreover, the findings in this paper also explains the concern of real estate appraisers and agents. Since they generally perceive that high-voltage overhead transmission lines have a negative impact on value, extra steps are potentially required when making a transaction. These extra steps may also address the health-related concerns discussed in the study by Pietro Comba & Lucia Fazzo (2009). This study’s average sales price is $222,291.17 while the average negative impact that a power line has is $10,511.49 (computed by adding the coefficients outputs of proximity to power lines and dividing by 5). With that in mind, on average, the house with a nearby high-voltage power line sold for 4.73% less than the house without (computed as average impact divided by average

Get Access