Convergence in House Prices: Cross-Regional Evidence for Turkey

Aytul Ganioglu and Ünal Seven

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: This paper analyzes the long-run convergence of regional house prices in Turkey. Using a non-linear time-varying factor model and quarterly house price data for the period between 2010 and 2018, we find that house prices do not converge across the 26 regions. The results reveal that the regions can be grouped into seven convergence clubs and one divergent club, confirming the heterogeneity and complexity of the Turkish housing market. These results also imply the existence of multiple steady states in the housing market. These outcomes will be beneficial to home buyers/sellers, investors, regulators and policymakers, who are interested in analyzing the dynamic interlinkages among house prices and the effects of shocks originating from the regional housing markets.

Keywords: Housing market; House prices; Log-t test; Regional convergence (search for similar items in EconPapers)
JEL-codes: C33 O18 R31 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ara, nep-bec and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1914

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