Simulation analysis of the impact of blockchain-orchestrated home sales in Sweden on housing price dynamics

Jaroslaw Morawski and Anetta Proskurovska

ERES from European Real Estate Society (ERES)

Abstract: The introduction of blockchain-based solutions to the real estate transaction process has received significant attention in the recent years. However, there is still little clarity as to what the impact of such step might be on the dynamics of the real estate market. We build an agent-based model calibrated on the Swedish market and use it in a simulation analysis to study how redesigning of the house sale process with blockchain can affect housing price dynamics. First, the model looks at the traditional transaction setup using the sequence of interactions between parties as is typical in Sweden today. In the second step, we simulate a streamlined transactional workflow orchestrated by a hypothetical blockchain smart contract and compare its outcome with that of the traditional process. Our main goal is to investigate whether streamlining housing transactions via permissioned blockchain application exacerbates market volatility and generates flash crashes. At this point, the analysis is still ongoing and the results are outstanding.

Keywords: blockchain; housing market; Simulation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-cmp, nep-pay and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:2022_187

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