IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2010_307.html
   My bibliography  Save this paper

Implications Of The Home Buying Process For Short Term Transactions

Author

Listed:
  • Manuel Käsbauer
  • Ralf Hohenstatt

Abstract

Studies about the housing market based on fundamentals like income, construction costs, interest rate generally lacked in explanation power during the latest massive price move-ments especially in the US. The main reason for this might be that expectations of individu-als for further price increases as a main driver for house prices during that period were not considered. The importance of expectations can be due to the belief of a lack in affordability of housing after further price increases. Alternatively this euphoric element is based on the implicit costs of not gaining from the price increases (Shiller 2007). This study is one of the first considering householdsí rationales in their decision for an in-vestment in their own property. The National Association of Realtors observes home buyersí characteristics for nine years now. Based on the implications of their surveys we provide a sophisticated analysis of householdsí behavior during their home buying process. Further-more these insights suggest leading indicators for transactions in the housing market taken in the near future. This connection is caused by the common cyclical behavior of informa-tion gathering processes, i.e. yard signs or real estate agents, and transactions as well as the logical lag structure of this search process and the corresponding transaction. Finally, as we are able to forecast transactions, we make inference about house price movements following the assumption of households¥ belief of mean reversion of house prices (Arbel et. al. 2009).

Suggested Citation

  • Manuel Käsbauer & Ralf Hohenstatt, 2010. "Implications Of The Home Buying Process For Short Term Transactions," ERES eres2010_307, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2010_307
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2010-307
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2010_307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.