Hot and cold seasons in the housing market

L. Rachel Ngai and Silvana Tenreyro

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Every year during the second and thirdquarters (the “hot season”) housing markets in the UK and the US experience systematic above-trend increases in both prices and transactions. During the fourth and first quarters (the “cold season”), house prices and transactions fall below trend. We propose a search-and-matching framework that sheds new light on the mechanisms governing housing market fluctuations. The model has a “thick-market” effect that can generate substantial differences in the volume of transactions and prices across seasons, with the extent of seasonality in prices depending crucially on the bargaining power of sellers. The model can quantitatively mimic the seasonal fluctuations in transactions and prices observed in the UK and the US.

JEL-codes: E0 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2009-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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http://eprints.lse.ac.uk/25497/ Open access version. (application/pdf)

Related works:
Journal Article: Hot and Cold Seasons in the Housing Market (2014)
Working Paper: Hot and cold seasons in the housing market (2014)
Working Paper: Hot and Cold Seasons in the Housing Market (2013)
Working Paper: Hot and cold seasons in the housing market (2013)
Working Paper: Hot and Cold Seasons in the Housing Market (2009)
Working Paper: Hot And Cold Seasons in the Housing Market (2009)
Working Paper: Hot and cold seasons in the housing markets (2008)
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