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Housing Prices and Macroeconomic Factors: Prospects within the European Monetary Union

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Abstract

This study analyses the dynamic effects of specific macroeconomic variables (i.e. housing loan rates, inflation and employment) on the price of new houses sold in Greece. An error correction vector autoregressive (ECVAR) model is used to model the impact of the macroeconomic variables on real housing prices. Variance decompositions show that the housing loan rate is the variable with the highest explanatory power over the variation of real housing prices, followed by inflation and employment.

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  • Nicholas Apergis, 2003. "Housing Prices and Macroeconomic Factors: Prospects within the European Monetary Union," International Real Estate Review, Global Social Science Institute, vol. 6(1), pages 63-74.
    • Handle: RePEc:ire:issued:v:06:n:01:2003:p.63-74
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    References listed on IDEAS

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    More about this item

    Keywords

    Housing prices; macroeconomic factors; ECVAR model; Greece;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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