Behavioural Aspects of Price Expectations and the Anchoring Effect on the Housing Market – Polish Case Study

Housing is a heterogeneous good, which makes choosing a house a complex process. An unexplained variability of the housing prices led to growing interest in studying prices and price expectations from a behavioural perspective. We conduct an experiment to study house price anchoring. In this research we use empirical data, examining the strength of the anchoring effect in terms of the external paradigm. We check whether and how respondents revise their valuations and expectations after receiving additional external information. It turns out that anchors impact households' decisions regarding the housing price valuation and dynamics forecasts, which could suggest households' autoregressive way of thinking.