Housing Prices and Transaction Volume
AbstractWe 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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Bibliographic InfoPaper provided by Research and Monetary Policy Department, Central Bank of the Republic of Turkey in its series Working Papers with number 1211.
Date of creation: 2012
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Other versions of this item:
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- G1 - Financial Economics - - General Financial Markets
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