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Housing Prices and Transaction Volume

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  • H. Cagri Akkoyun
  • Yavuz Arslan
  • Birol Kanik

Abstract

We use annual, quarterly and monthly data from the US to show that the correlation between housing prices and transaction volume (number of existing houses sold) di¤ers across di¤erent frequencies. While the correlation is high at the low frequencies it declines to the levels close to zero at high frequencies. Granger causality tests for di¤erent frequencies show the way of causality in housing market goes from transactions to housing prices. Our ?ndings provide a litmus test for the existing theories that are proposed to explain the positive correlation between transaction volume and housing prices.

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Paper provided by Research and Monetary Policy Department, Central Bank of the Republic of Turkey in its series Working Papers with number 1211.

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Date of creation: 2012
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Handle: RePEc:tcb:wpaper:1211

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Cited by:
  1. Arslan, Yavuz & Kanik, Birol & Köksal, Bülent, 2014. "Anticipated vs. Unanticipated House Price Movements and Transaction Volume," MPRA Paper 54641, University Library of Munich, Germany.

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