Overview of the U.S. Real Estate Market

While it is well-known that housing prices generally increased in the United States (U.S.) during the COVID-19 pandemic crisis, to the best of our knowledge, there has been no research conducted to understand the spatial patterns and heterogeneity of housing price changes in the U.S. real estate market during the crisis. There has been less attention on the consequences of this pandemic, in terms of the spatial distribution of housing price changes in the U.S. The objective of this study was to explore the spatial patterns and heterogeneous distribution of housing price change rates across different areas of the U.S. real estate market during the COVID-19 pandemic. We calculated the global Moran’s I, Anselin’s local Moran’s I, and Getis-Ord’s statistics of the housing price change rates in 2856 U.S. counties. The following two major findings were obtained: (1) The influence of the COVID-19 pandemic crisis on housing price change varied across space in the U.S. The patterns not only differed from metropolitan areas to rural areas, but also varied from one metropolitan area to another. (2) It seems that COVID-19 made Americans more cautious about buying property in densely populated urban downtowns that had higher levels of virus infection; therefore, it was found that during the COVID-19 pandemic year of 2020–2021, the housing price hot spots were typically located in more affordable suburbs, smaller cities, and areas away from high-cost, high-density urban downtowns. This study may be helpful for understanding the relationship between the COVID-19 pandemic and the real estate market, as well as human behaviors in response to the pandemic.

Download Full-text

Slicing, Dicing, and Scoping the Size of the U.S. Commercial Real Estate Market

Journal of Real Estate Portfolio Management ◽

10.1080/10835547.2010.12089875 ◽

2010 ◽

Vol 16 (2) ◽

pp. 101-118 ◽

Cited By ~ 25

Author(s):

Andrew Florance ◽

Norm Miller ◽

Ruijue Peng ◽

Jay Spivey

Keyword(s):

Real Estate ◽

Real Estate Market ◽

Commercial Real Estate ◽

The U.S

Download Full-text

Home Equity Insurance & The Demise Of Home Value Insurance Corporation

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v30i6.8884 ◽

2014 ◽

Vol 30 (6) ◽

pp. 1709

Author(s):

Zachary A. Smith ◽

Alan Harper

Keyword(s):

Real Estate ◽

Housing Prices ◽

Real Estate Market ◽

Insurance Company ◽

Home Equity ◽

Put Options ◽

Home Value ◽

Option Pricing Model ◽

The Cost ◽

The U.S

<p>This study uses the demise of the Home Value Insurance Company (HVIC) to explore whether the concept of home equity insurance is implementable. Shiller, R. and Weiss, A. (1999) and Goetzmann, W., Caplin, A., Hangen, E., Nalebuff, B., Prentce, E., Rodkin, J., Spiegel, M. and Skinner, T. (2003) have provided a platform to evaluate this concept by questioning whether a product that allows homeowners to transfer the risk associated with a decline in housing prices should be structured as insurance. This study explores the cost associated, in the U.S. Real Estate Market, with this risk transfer process in the pre and post mortgage crisis periods by simulating the cost of insurance using the theoretical pricing of ATM (at the money) put options based upon the Black Scholes Option Pricing Model from 1989 to 2013. As the U.S. Housing Market transitioned from the pre-crisis to the post-crisis periods the hypothetical breakeven cost of insurance increased from 0.60% to 20.85% of the starting value of the index. The demise of HVIC seems to be a cautionary tale: Given the recent changes in the underlying dynamics of the U.S. Real Estate Market it does not seem prudent (for insurers) to use insurance contracts to transfer the risk associated with a decline in the value of U.S. Residential Equity Wealth.</p>

Download Full-text

The U.S. Real Estate Market

AIMR Conference Proceedings ◽

10.2469/cp.v1995.n3.2 ◽

1995 ◽

Vol 1995 (3) ◽

pp. 6-13, 18-20

Author(s):

S. Michael Giliberto

Keyword(s):

Real Estate ◽

Real Estate Market ◽

The U.S

Download Full-text

Impact of oil prices, the U.S interest rates on Turkey’s real estate market. New evidence from combined co-integration and bootstrap ARDL tests

PLoS ONE ◽

10.1371/journal.pone.0242672 ◽

2021 ◽

Vol 16 (1) ◽

pp. e0242672

Author(s):

Ahmed Alhodiry ◽

Husam Rjoub ◽

Ahmed Samour

Keyword(s):

Interest Rate ◽

Real Estate ◽

Interest Rates ◽

Oil Prices ◽

Real Estate Market ◽

External Shocks ◽

Integration Test ◽

Testing Approach ◽

The Impact ◽

The U.S

The research aims to provide new empirical evidence by testing the impact of the external shocks namely: oil prices and the U.S interest rate on Turkey’s real estate market by using three techniques of co-integration tests namely: the newly developed bootstrap autoregressive distributed lag (ARDL) testing approach as proposed by (McNown et al. 2018), the new approach involving the Bayer-Hanck (2013) combined co-integration test, Hatemi-J (2008) co-integration testing approach. The ARDL model is utilized to explore the relationship between the variables. The findings show that the oil prices have a positive impact on Turkey’s real estate market, the results confirm that there is a significant impact of oil prices on Turkey’s real estate market through the domestic interest rate. Furthermore, the results demonstrated that there is a significant spillover influence of the U.S. interest rates on Turkey’s real estate market through oil prices and domestic interest rates. This study suggests that the following factors led to increasing the sensitivity and volatility of the Turkish real estate market to oil prices and the U.S. interest rate fluctuations: the presence of economic interdependence between the USA and Turkey, and the majority of the external debts and the reserve currency in Turkey are composed in the USD, and Turkey’s oil imports hit record high in last years. Finally, this article suggests that policymakers in Turkey should pay close attention to the effects of external shocks namely the oil prices and U.S. interest rates on Turkish markets to maintain economic and financial stability.

Download Full-text