The Honeycomb Cycle in Real Estate
A change in market conditions can trigger a cyclical response in the housing market, a cycle in both prices and number of transactions. This is caused not only by production lags but also by the reactions of buyers and sellers. The fact that many buyers are also sellers, and vice versa, has a special effect on this cycle. In this paper a theory of this cycle in prices and transactions is developed and empirically tested. It is found that volume changes are much more closely related statistically to changes in market conditions that are price changes. A clear cycle is found in two of the four towns studied.
Volume (Year): 9 (1994)
Issue (Month): 2 ()
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References listed on IDEAS
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- John S. Hekman, 1985. "Rental Price Adjustment and Investment in the Office Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(1), pages 32-47.
- Richard Voith & Theodore Crone, 1988. "National Vacancy Rates and the Persistence of Shocks in U.S. Office Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 437-458.
- R Barras, 1983. "A simple theoretical model of the office-development cycle," Environment and Planning A, Pion Ltd, London, vol. 15(10), pages 1381-1394, October.
- R Barras, 1983. "A Simple Theoretical Model of the Office-Development Cycle," Environment and Planning A, , vol. 15(10), pages 1381-1394, October.