REAL ESTATE MARKET AT A CROSSROAD - ERA OF AFFORDABLE HOUSING IS GONE

Klára ?ermáková (), Eduard Hromada (), Ondrej Bednar () and Tomáš Pavelka ()
Additional contact information
Klára ?ermáková: Prague University of Economics and Business, dept. of Economics
Eduard Hromada: Czech Technical University
Ondrej Bednar: Prague University of Economics and Business, dept. of Economics
Tomáš Pavelka: Prague University of Economics and Business, Prague University of Economics and Business, Department of Managerial Economics

International Journal of Economic Sciences, 2023, vol. 12, issue 1, 38-61

Abstract: Within a broad discussion on property price formation and property market specifics this paper aims to investigate the relationship between property price trends and number of transactions occurred on housing market. Specifically, we test if housing transaction volumes and rents are good predictors of housing prices and discuss causalities and differences in this relationship on the sales and rental property markets. We bring evidence from selected European property markets about the relationship between property price trend and number of transactions occurring on this market. We argue that increased number of transactions is predictive of increase in property price, but prices tend to be rigid in the opposite (downward) direction. Thus, cooling down of demand for properties may rather decrease number of transactions than push down property prices. This appealing result may bring light into understanding why property prices appreciate across time and countries.

Keywords: housing market; property price; transactions; rent; housing affordability; market turnover; inflation; mortgage loans (search for similar items in EconPapers)
JEL-codes: O18 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eurrec.org/RePec/aop/jijoes/0085ES.rdf117056
https://eurrec.org/RePec/aop/jijoes/0085ES.rdf117056?download=3

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:aop:jijoes:v:12:y:2023:i:1:p:38-61

Access Statistics for this article

International Journal of Economic Sciences is currently edited by Jan Cadil

More articles in International Journal of Economic Sciences from European Research Center
Bibliographic data for series maintained by Jiri Rotschedl ().