The reason I think it isn't straightforward to account for is based on several things: it isn't fungible, the purchase date can have little or no relationship to the price, and the means of purchase typically carry other time-based constraints that are also not necessarily related to price (although they can be). Furthermore, the liquidity in a given market may change fairly quickly and without any (apparent) other reason.
I haven't tried to develop a model for this, so this is just sort of a gut feel for how difficult feature engineering to account for how a market behaves in this respect might be. And that "gut feel" is mainly informed by my experience purchasing and selling property (for personal and rental use).
I'm not convinced that risk as used in this context contributes to price significantly in the residential real estate market. People in this market don't (typically) view transactions as investments and they don't view the home as assets. Lenders do, so the availability of mortgage funds may be linked to price and liquidity but I suspect that relationship is tenuous at best.
The reason I think it isn't straightforward to account for is based on several things: it isn't fungible, the purchase date can have little or no relationship to the price, and the means of purchase typically carry other time-based constraints that are also not necessarily related to price (although they can be). Furthermore, the liquidity in a given market may change fairly quickly and without any (apparent) other reason.
I haven't tried to develop a model for this, so this is just sort of a gut feel for how difficult feature engineering to account for how a market behaves in this respect might be. And that "gut feel" is mainly informed by my experience purchasing and selling property (for personal and rental use).