The impact of external factors on housing prices in Lithuania
International Journal of Housing Markets and Analysis
; 15(4):833-851, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1901360
ABSTRACT
Purpose>This paper aims to identify the external factors that have the greatest impact on housing prices in Lithuania.Design/methodology/approach>The econometric analysis includes stationarity test, Granger causality test, correlation analysis, linear and non-linear regression modes, threshold regression and autoregressive distributed lag models. The analysis is performed based on 137 external factors that can be grouped into macroeconomic, business, financial, real estate market, labour market indicators and expectations.Findings>The research reveals that housing price largely depends on macroeconomic indicators such as gross domestic product growth and consumer spending. Cash and deposits of households are the most important indicators from the group of financial indicators. The impact of financial, business and labour market indicators on housing price varies depending on the stage of the economic cycle.Practical implications>Real estate market experts and policymakers can monitor the changes in external factors that have been identified as key indicators of housing prices. Based on that, they can prepare for the changes in the real estate market better and take the necessary decisions in a timely manner, if necessary.Originality/value>This study considerably adds to the existing literature by providing a better understanding of external factors that affect the housing price in Lithuania and let predict the changes in the real estate market. It is beneficial for policymakers as it lets them choose reasonable decisions aiming to stabilize the real estate market.
Housing And Urban Planning; Housing; Prediction; Housing prices; Housing market analysis; Lithuania; External factors; Real estate; Macroeconomics; Banking industry; Investments; Households; Regression analysis; Economic conditions; Correlation analysis; Indicators; Interest rates; Consumer Price Index; Economic growth; COVID-19; Economic policy; Consumers; Pandemics; Consumption; Personal bankruptcy; Mortgages; Impact analysis; Economic analysis; Gross Domestic Product--GDP; Autoregressive models; Unemployment; Capital assets; Econometrics; Decisions; Recessions; 92611:Administration of General Economic Programs
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Type of study:
Experimental Studies
Language:
English
Journal:
International Journal of Housing Markets and Analysis
Year:
2022
Document Type:
Article
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