Al-Masum, Md Abdullah, and Chyi Lin Lee. “Modelling housing prices and market fundamentals: evidence from the Sydney housing market.” International Journal of Housing Markets and Analysis 12.4 (2019): 746-762.
Al-Masum and Lee’s “Modelling housing prices and market fundamentals: evidence from the Sydney housing market” examines Sydney housing prices and market fundamentals. The writers concentrate on housing. The authors employ a vector error correction model to forecast the long-run equilibrium relationship between housing prices and market fundamentals. The study found that income, population, and interest rates affect Sydney home prices. The authors believe the relationship between property prices and market fundamentals is nonlinear and varies by Sydney neighborhood. Policymakers, investors, and other market players interested in Sydney housing dynamics should investigate this study. Policymakers may utilize the data to design housing market stability strategies amid excessive volatility. The knowledge may help investors make better Sydney real estate market decisions. Market participants may use the information to understand other players’ activities better and make intelligent housing asset purchases and sales. It employs a disaggregated dataset of Greater Sydney house prices to study the Sydney property market, making it unique. Previous research found a strong association between market fundamentals and property prices. This research confirms earlier findings. The inquiry and data collection are minimal. This study cannot assess other macroeconomic issues since it exclusively examines housing prices and market fundamentals.
Dias, Daniel A., and João B. Duarte. “Monetary policy, housing rents, and inflation dynamics.” Journal of Applied Econometrics 34.5 (2019): 673-687.
Dias and Duarte’s “Monetary policy, housing rents, and inflation dynamics” examines how monetary policy shocks affect US home rentals. The authors utilize a small-scale proxy structural vector autoregressive (SVAR) model to study monetary policy and housing rents. The most noteworthy finding from this study was that contractionary monetary policy shocks raise rents rather than property values. The authors also find that a contractionary monetary policy shock lowers owner and rental property vacancy rates. This suggests that monetary policy may affect house ownership decisions. Except for the housing component of the consumer price index (CPI), all other essential elements either decline in price or do not react to a contractionary monetary policy shock, according to the study. Due to these findings, the authors had to examine the statistical properties of several inflation indices without the shelter component. These researchers found that traditional inflation metrics like the CPI and PCE are more susceptible to monetary policy changes. They also find higher standard deviations in inflation metrics without shelter. Government decision-makers and investors interested in US housing market developments need this research. Policymakers may use the data to create new home market laws to combat increasing inflation. Investors may utilize the data to make savvy US housing market investments.
Korkmaz, Özge. “The relationship between housing prices and inflation rate in Turkey: Evidence from panel Konya causality test.” International Journal of Housing Markets and Analysis 13.3 (2019): 427-452.
Korkmaz’s work, “The relationship between housing prices and inflation rate in Turkey: Evidence from panel Konya causality test,” examines the possibility of a causative relationship between inflation and property prices in Turkey. The research used the Konya Causality test to ascertain a causal link between the consumer price index and the housing price index. The study uses data from 26 different areas in Turkey and spans 2010–2019. The research discovered that HPI increased inflationary pressures in several parts of Turkey. The findings imply that the price of real estate in Turkey is significantly influenced by the inflation rate. The report also emphasizes the historical and cultural justifications for property ownership in Turkey, as well as the need for a haven for all living things. By investigating the relationship between housing prices and inflation in Turkey from an empirical standpoint and at the regional level, this study contributes to the body of knowledge. While earlier studies concentrated solely on a few of Turkey’s 26 regions, the new study examines the country as a whole. Data collection and the scope of the investigation are, however, constrained in a number of ways. Due to these limitations, the research can only look at how inflation affects home prices; it cannot look at other macroeconomic factors like wage growth or unemployment.
Kuchler, Theresa, Monika Piazzesi, and Johannes Stroebel. “Housing market expectations.” Handbook of Economic Expectations. Academic Press, 2023. 163-191.
In their book “Housing Market Expectations,” Kuchler, Piazzesi, and Stroebel summarize housing market expectations research. The authors outline the different methods used to assess home market expectations and explore their empirical correctness. They also examine how individuals’ expectations affect their housing market behavior and the economy. This chapter begins with an introduction to housing market expectations surveys and then discusses how they may be expanded. After that, they discuss studies on how individuals set expectations and conclude. One’s outlook on the housing market is influenced by a number of factors, including recent changes in home prices, one’s personal or local real estate market, one’s social network, and one’s current homeownership status.The past volatility of house prices also makes expectations dubious. The article is relevant since Policymakers, investors, and other market actors may utilize this chapter’s findings to understand housing market dynamics. Policymakers may use the data to build housing market stabilization strategies during periods of high volatility. Investors may use the insights to make informed home market investments. Market participants may use the information to understand other players’ activities better and make more informed housing asset purchases and sales.
Works Cited
Al-Masum, Md Abdullah, and Chyi Lin Lee. “Modelling housing prices and market fundamentals: evidence from the Sydney housing market.” International Journal of Housing Markets and Analysis 12.4 (2019): 746-762.
Dias, Daniel A., and João B. Duarte. “Monetary policy, housing rents, and inflation dynamics.” Journal of Applied Econometrics 34.5 (2019): 673-687.
Korkmaz, Özge. “The relationship between housing prices and inflation rate in Turkey: Evidence from panel Konya causality test.” International Journal of Housing Markets and Analysis 13.3 (2019): 427-452.
Kuchler, Theresa, Monika Piazzesi, and Johannes Stroebel. “Housing market expectations.” Handbook of Economic Expectations. Academic Press, 2023. 163-191.
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