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Housing Prices and Transaction Volume

Author

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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.

Suggested Citation

  • H. Cagri Akkoyun & Yavuz Arslan & Birol Kanik, 2012. "Housing Prices and Transaction Volume," Working Papers 1211, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  • Handle: RePEc:tcb:wpaper:1211
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    References listed on IDEAS

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    Cited by:

    1. Arslan, Yavuz & Kanık, Birol & Köksal, Bülent, 2015. "Anticipated vs. unanticipated house price movements and transaction volume," Journal of Housing Economics, Elsevier, vol. 28(C), pages 121-129.
    2. Li, Yuming, 2015. "The asymmetric house price dynamics: Evidence from the California market," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 1-12.
    3. Nagayasu, Jun, 2016. "Inflation and Bubbles in the Japanese Condominium Market," MPRA Paper 71192, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • 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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