AbstractsEconomics

<strong>Aim</strong>: The purpose of this study is to find new variables that can help explain the variation in the prices of apartments in the county of Stockholm. <strong>Method</strong>: By using recreated variables from an existing model created by Claussen, Jonsson and Lagerwall (2011) on behalf of Sweden’s central bank, and adding new variables obtained by the realtor Erik Olsson and the housing ad website Hemnet, the goal is to find a model that explains as much of the price variation as possible. The accuracy of the model is tested by an out-of- sample forecast. The study is based on monthly data for the years 2008 up until February 2013 and is written in cooperation with Valueguard. <strong>Findings</strong>: By combining the two data sets the adjusted coefficient of determination was 0,703, which means that 70,3% of the variation in the prices can be explained by the model.