The Impact of different Financial Intermediaries on Housing Market Cycles

Julia Braun, Hans-Peter Burghof, Julius Langer and Dag Einar Sommervoll

ERES from European Real Estate Society (ERES)

Abstract: Housing markets display several correlations to multiple economic sectors of an economy. Their enormous impact on economies’ health, wealth, and stability is uncontroversial. Interestingly, the forms of financing residential property vary widely between the different countries in terms of both, the available product types and the institutions offering them. This research examines the implications of different financial intermediaries on housing market cycles with special emphasis on two institutional types, conventional banks and building and loan associations. Introducing a heterogeneous agent-based model, the interactions of buyers, sellers, and the two types of credit institutions are assessed in an artificial economy. It is elaborated whether financial institutions are able to smooth housing market cycles and, therefore, increase stability using different mortgage granting policies.

Keywords: Heterogeneous agent-based model; Housing financing; Housing market cycles; Housing market stability (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-hme and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:2022_9

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