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The Application of the Simplified Speculative Frame Method for Monitoring the Development of the Housing Market

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  • Brzezicka Justyna

    (Department of Spatial Analysis and the Real Estate Market, Faculty of Geoengineering, University of Warmia and Mazury in Olsztyn)

Abstract

This article contributes to research into price dynamics on the real estate market. It proposes a simplified index-based speculative frame method for measuring above-average increases and decreases in real estate prices and monitoring market performance. The theoretical part of the article reviews the literature on the implications of real estate market stability on the economy, monitoring market development, and standard methods for analyzing the housing market with special emphasis on index-based methods. The experimental part of the article presents the results of a study analyzing more than 100,000 transactions on the Warsaw housing market between 2004 and 2015, a period characterized by a considerable increase in house prices. The price dynamics of apartments on the Warsaw real estate market was determined with the use of a time variable. The turning point in the market trend was identified. This article contributes to research into price dynamics on the real estate market.

Suggested Citation

  • Brzezicka Justyna, 2022. "The Application of the Simplified Speculative Frame Method for Monitoring the Development of the Housing Market," Real Estate Management and Valuation, Sciendo, vol. 30(1), pages 84-98, March.
    • Handle: RePEc:vrs:remava:v:30:y:2022:i:1:p:84-98:n:2
    DOI: 10.2478/remav-2022-0008
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    More about this item

    Keywords

    housing market stability; bubble; speculative frame method; simplified speculative frame method;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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