TESTING FOR BUBBLES IN THE HOUSING MARKET: FURTHER EVIDENCE FROM TURKEY

Feyyaz Zeren and Oylum Şehvez Ergüzel
Additional contact information
Feyyaz Zeren: Namık Kemal University, Department of Business and Administration
Oylum Şehvez Ergüzel: Sakarya University, Department of International Trade

Studii Financiare (Financial Studies), 2015, vol. 19, issue 1, 40-52

Abstract: In this study whether bubbles exist in the three biggest cities housing market, İstanbul (TR10), İzmir (TR31) and Ankara (TR51) which are important parts of Turkish housing market is investigated. Besides, SADF and GSADF unit root tests developed by Phillips et. al. (2011, 2012) is used in order to detect bubbles in the housing market in the period between January-2010 and June-2014. The results show that real estate bubbles do not exist in the Turkish housing market and price increases above the average are experienced only for the short terms, not over the long terms permanently. In this context, efficient market hypothesis is valid for Turkish housing market and it verifies that Turkish housing market experienced the 2008 Mortgage crisis rather slightly than many other countries. These findings indicate stability in the housing market by sustaining its correct house pricing policy after the crisis.

Keywords: Real Estate Bubbles; Housing Market; SADF; GSADF; Turkey (search for similar items in EconPapers)
JEL-codes: C22 R31 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.icfm.ro/RePEc/vls/vls_pdf/vol19i1p40-52.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vls:finstu:v:19:y:2015:i:1:p:40-52

Access Statistics for this article

More articles in Studii Financiare (Financial Studies) from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Mateescu ().