The Impact of Interest Rates on the Real Estate Market

This paper investigates the impact of interest rate on real estate market. It estimates the impact of interest rates upon house price movements from 1980 to 2008 across 16 countries. I employ static panel data model to estimate determinants of house prices using a across country panel dataset. I als...

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Main Author: Mo, Jieling
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2009
Online Access:https://eprints.nottingham.ac.uk/23112/
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author Mo, Jieling
author_facet Mo, Jieling
author_sort Mo, Jieling
building Nottingham Research Data Repository
collection Online Access
description This paper investigates the impact of interest rate on real estate market. It estimates the impact of interest rates upon house price movements from 1980 to 2008 across 16 countries. I employ static panel data model to estimate determinants of house prices using a across country panel dataset. I also take a novel analysis for the fundamental determinants of house prices. The results show that unemployment rate, the share of active population, real broad money, short-term interest rate and inflation rate are negatively associated with house prices, and real per capita GDP is positively correlated to house prices. In particular, the short-term interest rate elasticity of house prices is -13.75. This result indicates that short-term interest rates play very important role in house prices and hence have a large impact on real estate market.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2009
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spelling nottingham-231122022-03-21T16:05:43Z https://eprints.nottingham.ac.uk/23112/ The Impact of Interest Rates on the Real Estate Market Mo, Jieling This paper investigates the impact of interest rate on real estate market. It estimates the impact of interest rates upon house price movements from 1980 to 2008 across 16 countries. I employ static panel data model to estimate determinants of house prices using a across country panel dataset. I also take a novel analysis for the fundamental determinants of house prices. The results show that unemployment rate, the share of active population, real broad money, short-term interest rate and inflation rate are negatively associated with house prices, and real per capita GDP is positively correlated to house prices. In particular, the short-term interest rate elasticity of house prices is -13.75. This result indicates that short-term interest rates play very important role in house prices and hence have a large impact on real estate market. 2009-09-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23112/1/The_Impact_of_Interest_Rates_on_the_Real_Estate_Market%28with_notes%29325.pdf Mo, Jieling (2009) The Impact of Interest Rates on the Real Estate Market. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Mo, Jieling
The Impact of Interest Rates on the Real Estate Market
title The Impact of Interest Rates on the Real Estate Market
title_full The Impact of Interest Rates on the Real Estate Market
title_fullStr The Impact of Interest Rates on the Real Estate Market
title_full_unstemmed The Impact of Interest Rates on the Real Estate Market
title_short The Impact of Interest Rates on the Real Estate Market
title_sort impact of interest rates on the real estate market
url https://eprints.nottingham.ac.uk/23112/