Revisiting the housing market dynamics and its fundamentals: new evidence from Cyprus

Alola, Andrew Adewale

doi:10.1108/jes-07-2018-0237

Cited by 8 publications

(5 citation statements)

References 61 publications

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“…However, the results show that there is no existing asymmetric Granger causality relationship between the housing price index and unemployment. This finding aligns with Pan ( 2018 ) for the G7 countries while it is not aligned with Alola ( 2020 ) for Cyprus.…”

Section: Resultsmentioning

confidence: 46%

Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies

Alola

Uzuner

2021

Environ Sci Pollut Res

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The spread of COVID-19 worldwide has shown how quick global economy can become affected when ones’ health and future are at risk. This paper examines the evidence of Granger causality among the housing price, the unemployment rate, crude oil price, and world pandemic uncertainty in France, Germany, the UK, and the USA over the period 1996Q1–2019Q2. In this case, the linear and asymmetric Granger causality approaches of Toda-Yamamoto and Hatemi-J are respectively applied to provide useful insight. Although only significant evidence of linear Granger causality is found among the unemployment rate and the house prices in all the four economies, the investigations revealed asymmetric evidence involving the world pandemic uncertainty. Specifically, there is a significant uni-directional asymmetric Granger causality from the world pandemic uncertainty to the house price in France, Germany, and the USA but not in the UK. The variation in the results among the examined countries is explained by potential differences in economic structures or business cycle and other social and economic factors. Thus, relevant policy guidance is implied from the results especially for the policymakers in the examined countries.

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Section: Resultsmentioning

confidence: 46%

Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies

Alola

Uzuner

2021

Environ Sci Pollut Res

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“…This study obtained monthly data on the HPI and quantity of HAF, the CPI and Turkish interest rates from January 2020 to March 2022 from the TurkStat and investing.com databases, respectively. CPI and interest rates are essential macroeconomic variables influencing housing prices and acquisition (Alola, 2020; Kartal et al , 2021; Saha et al , 2022). Therefore, controlling for those variables if they are not the focus of the study is essential.…”

Section: Methodsmentioning

confidence: 99%

Interdependence between foreigner housing acquisitions and housing price increase in Turkey during the COVID-19 pandemic era

Salami

Tanrıvermiş

Aliefendioğlu

2023

IJHMA

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Purpose This study aims to establish the relationship between house acquisitions by foreigners (HAF) and house price index (HPI) in Turkey. Design/methodology/approach Due to the nature of this study, the data spans from January 2020 to March 2022. The house price index and the number of foreign house acquisitions across three provinces: Ankara, Izmir and Bursa, and national-level data were obtained from the TurkStat database. Consumer price index (CPI) and Turkish interest rates are control variables. In addition, monthly Turkish interest rates and CPI were obtained from the investing.com and TurkStat database, respectively. Furthermore, this study used autoregressive-distributed lag and Toda Yamamoto Granger causality models to avoid analysis bias. HPI and HAF are the variables used to accomplish the objectives of this study. Findings This study established a short-run equilibrium between foreign house acquisitions at the provincial and national levels. The short-run deviations were adjusted faster, ranging from 57.53% to 89.24% for some provinces, while Izmir is struggling to adjust at 6.48%. Both unidirectional and bidirectional Granger causality evidence suggests that the Turkish house price index increases at the national and provincial levels. This finding suggests the need for continuous policy intervention in the Turkish housing market because house prices play a pivotal role in Turkish economic development and daily lives. Research limitations/implications This study’s scope and single-country study are its limitations. However, those limitations make the findings appropriate for the country of the study rather than generalising the results. Practical implications The study provides empirical evidence that foreign housing acquisition contributes negatively to housing affordability in Turkey and calls for authority intervention. This is because housing is considered shelter, a fundamental need to which citizens are expected to be entitled. Most citizens are low- and medium-income earners who may be unable to afford a house out of their income if it becomes costly. Once the expenditure to secure housing exceeds 30% of their income, it is considered unaffordable. Originality/value To the authors' best knowledge, this is the first empirical study that established the influence of foreign house acquisitions on Turkish house price increases and adversely reduced house affordability by Turkish citizens. The study is the first on foreign Turkish housing acquisition that used both theory of ownership and justice motivation theory to explain HAF.

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“…Holly et al (2010), Madsen (2012), Apergis et al (2015), Antonakakis et al (2015), Bahmani-Oskooee and Ghodsi (2017), Bahmani-Oskooee and Ghodsi (2018), Baghestani and Viriyavipart (2019), Alexiou and Vogiazas (2019). Alola (2020), De Albuquerquemello and Bessarria (2021) and Cuesta and Kukk (2021).…”

Section: Notesmentioning

confidence: 99%

Consumer sentiment and house prices: asymmetric evidence from state-level data in the United States

Bahmani‐Oskooee

Ghodsi²,

Hadzic

2021

IJHMA

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Purpose The purpose of this paper is to assess and compare the symmetric and asymmetric effects of consumer sentiment on house prices in each state of the USA. This is the first study that uses state-level data. Design/methodology/approach Both linear and nonlinear autoregressive distributed lag approaches are used to assess the asymmetric effects of consumer sentiment on house prices in each state of the USA. Findings When the authors estimated a linear symmetric model, this paper found short-run effects of consumer sentiment on house prices in 34 states that lasted into the long-run in only 13 states. The comparable numbers by estimating a nonlinear asymmetric model were 47 and 22, respectively. The increase in the number of states where consumer sentiment affects house prices was attributed to the nonlinear adjustments of consumer sentiment. Originality/value The authors deviate from previous research and assess the impact of consumer sentiment on house prices by using data from each state of the USA. The authors also deviate from previous research by demonstrating that the effects could be asymmetric. No study has done this at the state-level.

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Revisiting the housing market dynamics and its fundamentals: new evidence from Cyprus

Cited by 8 publications

References 61 publications

Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies

Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies

Interdependence between foreigner housing acquisitions and housing price increase in Turkey during the COVID-19 pandemic era

Consumer sentiment and house prices: asymmetric evidence from state-level data in the United States

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