Housing market volatility under COVID-19: Diverging response of demand in luxury and low-end housing markets

Wang, Bingbing

doi:10.1016/j.landusepol.2022.106191

Cited by 16 publications

(6 citation statements)

References 49 publications

(71 reference statements)

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“…Transaction volumes fell by about 40% in April, May, and June 2020 compared to those of 2019, as shown in Panel A of Table 1. According to Wang (2022), from April to June 2020, demand decrease dominated the housing market in Los Angeles, resulting in both declines in house prices and transaction volumes. Other research also found that house prices decreased in April and May 2020 (Del Giudice et al 2020;Allen-Coghlan and McQuinn 2021;Zhao 2020;Tian et al 2021;Cheung et al 2021;Yiu 2023aYiu , 2023b.…”

Section: The Covid-19 Effect On House Pricesmentioning

confidence: 99%

“…Together with the lift of the first-round stay-home orders in May 2020, the housing market was boosted by the low interest rates and the release of the housing demand after May. Wang (2022) found that the housing demand and house prices experienced increases through June to August 2020. In mid-August, some states reversed the lift of stay-home orders, issued restrictions on indoor activities, and still encouraged non-essential businesses to work virtually, such as California, New York, and Hawaii, but the implementation was generally less strict, and people did not follow the second-round orders as strictly as before.…”

Section: The Covid-19 Effect On House Pricesmentioning

confidence: 99%

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The Effect of Proximity to Universities on House Prices after the COVID Outbreak

Wang

2023

JRFM

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COVID-19 has made virtual interactions an integral part of learning modes. This made it possible for college students to live further away from school than before, which might change the house price neighboring universities. This article studies the effect of proximity to school on house prices after the COVID-19 outbreak using a non-parametric difference-in-differences approach with property-level transaction data surrounding 128 universities in the U.S. The results show that house prices within 0.5 miles of universities experienced a maximum decrease of approximately 7% after three months of the outbreak. The effects vary for universities that implemented different teaching modes of in-person, hybrid, and online. Since house prices are important indicators for local economic conditions, the results help local homeowners, investors, and governments in their decision-making processes.

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Section: The Covid-19 Effect On House Pricesmentioning

confidence: 99%

Section: The Covid-19 Effect On House Pricesmentioning

confidence: 99%

The Effect of Proximity to Universities on House Prices after the COVID Outbreak

Wang

2023

JRFM

Self Cite

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“…One of the variables deeply affecting housing prices in the recent period is the COVID-19 pandemic. Of those studying this subject, Zeng and Yi (2022), and Yang and Zhou (2022) for China, Wang (2022) for the USA, and Kadi et al (2020) for various cities of Austria have shown that the increase in demand due to pandemic measures effectively increased housing prices. In other words, the elasticity of supply against deferred demand has given rise to a supply-demand imbalance (Afxentiou et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

Yaşar,

Bulut

2023

Real Estate Management and Valuation

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Turkey is one of those countries where housing market has been most severely affected by COVID-19 pandemic. Today the effects of the outbreak have been eliminated significantly. This study retrospectively looks at the days when the world faced a widespread outbreak of a pandemic and investigates the effect of the pandemic and the changes in consumer confidence on housing prices and the volatility of housing prices. Considering the structural breaks in the analysis period (2010:q1-2022:q4 quarterly), we used the Lee and Strazicich structural break unit root test as a research method. The results show that an increase in costs due to a break in the supply chain and containment measures forcing the workforce to stay at home affected the housing supply adversely. It is observable that expansionary economic policies and social assistance programs have a positive effect on housing demand. In this regard, negative supply shock and positive demand pressure are seen to be the determinants of the recent housing price increases in Turkey. However, while there is a positive relationship between consumer confidence and house prices, the effect of house prices on the volatility is statistically insignificant.

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“…The different behaviors of luxury and low-end housing markets have been analyzed by Wang [101] by employing a difference-in-differences method. The findings first show that house prices, demand, and supply all decreased from March to May 2020 and increased in July and August 2020, with demand prevailing in the city of Los Angeles.…”

Section: Residential Marketmentioning

confidence: 99%

The Impacts of COVID-19 on Real Estate Market Dynamics: A Systematic Literature Review of Emerging Trends

Di Liddo,

Anelli,

Morano

et al. 2023

Buildings

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The real estate market constitutes one of the major sectors that was influenced by the COVID-19 pandemic. It is therefore useful to understand the ways in which COVID-19 has changed the dynamics of the real estate market, establishing new trends in different market segments. The health crisis has upset the consolidated “human normality” by spreading new behaviors and involving almost all sectors. Among economic fields, the identification of temporary and permanent impacts on the real estate market is fundamental to assess the consequences worldwide and to evaluate countries’ resilience ability. The aim of the research is to provide a systematic literature review on the existent academic insights in order to identify the aspects that have been mainly addressed regarding the real estate market’s impacts from COVID-19 and to grasp how the real estate market dynamics have changed. Thus, through five structured steps—from the formulation of research questions formulation to an analysis and discussion of the selected papers for drafting overall conclusions—102 research papers published in the period between the second half of 2020 and the first half of 2023 collected from Scopus and Google Scholar were reviewed and examined. The findings reveal that (i) the housing market has been the most analyzed, (ii) the period between 2021 and 2022 has been the most scientifically prolific, (iii) the US real estate market has been the most studied, (iv) American authors have been the most active on the subject, (v) and the “article” type of research paper has been the most published. These results provide the basis for future research developments on COVID-19 and real estate market dynamics, supporting the implementation of recovery plan strategies and decision-making processes of the market operators for improving the sector.

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Housing market volatility under COVID-19: Diverging response of demand in luxury and low-end housing markets

Cited by 16 publications

References 49 publications

The Effect of Proximity to Universities on House Prices after the COVID Outbreak

The Effect of Proximity to Universities on House Prices after the COVID Outbreak

Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

The Impacts of COVID-19 on Real Estate Market Dynamics: A Systematic Literature Review of Emerging Trends

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