scholarly journals Price Bubble In The Real Estate Market - Behavioral Aspects

2014 ◽  
Vol 22 (1) ◽  
pp. 77-90 ◽  
Author(s):  
Justyna Brzezicka ◽  
Radosław Wisniewski
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Herd Behavior ◽  
Negative Consequences ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
Price Bubble ◽  
The Real Estate Market ◽  
Behavioral Aspects

Abstract The article pertains to the topic of speculative price bubbles which arise in the real estate market. The individual parts of the article deal with the connection between the price bubble in the American real estate market and the global economic crisis, defining the concept of a price bubble with regard to the behaviors of market participants, providing a description of the environment generating price bubbles, and systematizing the reasons behind the formation of price bubbles. The analysis of behavioral aspects accompanying the existence of a price bubble is a key issue. The assumed considerations indicate that the housing price bubble could not exist in the real estate market (REM) if its formation was not accompanied by behavioral aspects. These aspects include, among others, giving in to temptations and emotions, limited rationalism, herd behavior, and seeking to make profits in a short amount of time at the expense of long-term negative consequences. The nature of these deliberations is theoretical.

scholarly journals Evaluation of factors leading to formation of price-bubbles in the real estate market of Lithuania

2015 ◽  
Vol 16 (4) ◽  
pp. 345-352
Author(s):  
Audrius Dzikevičius ◽  
Lukas Kazlauskas ◽  
Šarūnas Bruzgė
Keyword(s):  
Regression Analysis ◽  
Real Estate ◽  
Business Cycles ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
Correlation And Regression Analysis ◽  
Price Bubble ◽  
The Real Estate Market

Recently, real estate market has been discussed more frequently in the framework of economic analysis. The global economic crisis of 2008 has demonstrated the severity of financial shock that can be caused by inconsiderate investments in the real estate market. The present article analyses business cycles and the phenomenon of a price-bubble in that context. Drawing on the analysis of reference literature we identify the main reasons that can lead to fluctuations of prices in the real estate market. Finally, drawing on correlation and regression analysis we determine which factors have the strongest influence on the Lithuanian real estate market.

scholarly journals Price Bubbles in the Real Estate Markets - Analysis and Prediction

2022 ◽  
Vol 19 ◽  
pp. 292-303
Author(s):  
Paweł Dec ◽  
Gabriel Główka ◽  
Piotr Masiukiewicz
Keyword(s):  
Real Estate ◽  
Predictive Analytics ◽  
Real Estate Market ◽  
Point Of View ◽  
Subprime Crisis ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
The Real Estate Market ◽  
The Government

The article concerns the issue of price bubbles on the markets, with particular emphasis on the specificity of the real estate market. Up till now, more than a decade after the subprime crisis, there is no accurate enough method to predict price movements, their culmination and, eventually, the burst of price and speculative bubbles on the markets. Hence, the main goal of the article is to present the possibility of early detection of price bubbles and their consequences from the point of view of the surveyed managers. The following research hypothesis was verified: price bubbles on the real estate market cannot be excluded, therefore constant monitoring and predictive analytics of this market are needed. In addition to standard research methods (desk research or statistical analysis), the authors conducted their own survey on a group of randomly selected managers from Portugal and Poland in the context of their attitude to crises and price bubbles. The obtained results allowed us to conclude that managers in both analysed countries are different relating the effects of price bubbles to the activities of their own companies but are similar (about 40% of respondents) expecting quick detection and deactivation of emerging bubbles by the government or by central bank. Nearly 40% of Polish and Portuguese managers claimed that the consequences of crises must include an increased responsibility of managers for their decisions, especially those leading to failures.

scholarly journals The price bubble morphology

2013 ◽  
Vol 13 (1) ◽  
pp. 76-94 ◽  
Author(s):  
Waldemar Tyc
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Economic System ◽  
Institutional Environment ◽  
Real Estate Market ◽  
Economic Systems ◽  
The Real Estate ◽  
Price Bubbles ◽  
Price Bubble ◽  
The Real Estate Market

Abstract The article presents a discourse on the mechanism by which price bubbles emerge and burst. For idealization purposes the author assumes that even though price bubbles emerge in various markets, their morphology differs from market to market, be it the hi-tech stock (or, more generally, the stock market), the real estate market (where land is of fixed supply) or the housing market. The sources of their diversification lie in the type and weight of the causes of their appearance, the differences between their causative and functional determinants and the market feedbacks. Any interpretation of the nomological diversification of price bubbles (in the sense of their categorisation) requires looking at the system pragmatics and the market in which they emerge. Thus the designations of economic systems and the specifics of markets constitute both the economic and the institutional environment of their origin. They also constitute the necessary context for their understanding and interpretation, as price bubbles rise and collapse within specific functional structures of an economic system.

scholarly journals Speculative Bubbles and their Components on the Real Estate Market–A Preliminary Analysis

2016 ◽  
Vol 24 (1) ◽  
pp. 87-99 ◽  
Author(s):  
Justyna Brzezicka
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Market Prices ◽  
Speculative Bubble ◽  
The Real ◽  
The Real Estate ◽  
Speculative Bubbles ◽  
Price Bubbles ◽  
The Real Estate Market ◽  
Over Time

Abstract Various speculative phenomena arise on the real estate market, and the speculative bubble (SB) is one of the best known events of the type. Speculative bubbles still have many unidentified components, and are characterized by high research potential due to the multiple factors responsible for bubble creation, as well as considerable practical implications on account of the multivariate results describing the real estate market (REM) and its surroundings. Speculative price bubbles are associated mainly with changes in price trends on the real estate market. A thorough analysis of a speculative bubble over time demonstrates trend changes also in other research categories which constitute bubble components and elements of the real estate market and its surroundings. The above criteria were used to identify a new research category termed speculative bubble components (SBC). The research hypothesis states that speculative bubbles should be analyzed based not only on prices, but also on bubble components. The objectives of this study were to: 1) classify speculative phenomena on the REM, 2) describe a speculative bubble based on market prices and SBC, and 3) present the results of a study evaluating speculative bubble components in relation to market prices, and discuss the trajectories of the analyzed research categories over time. This study attempts to determine whether a speculative bubble can be analyzed in view of its components, and which elements of the real estate market and its surroundings can be classified as SBC. Attempts were also made to identify a research method that supports the identification of SBC variables and classification of variables into groups, and explains market prices in view of the identified variables and groups. The research relies on a review of literature in the theoretical part and statistical analyses in the experimental part. The results will broaden our knowledge of the mechanisms behind speculative phenomena on the real estate market.

scholarly journals Impact of the coronavirus pandemic in 2020 on the real estate market in Russia: legal aspects

2020 ◽  
Vol 210 ◽  
pp. 13001
Author(s):  
Karine Avakyan ◽  
Gennady Pratsko
Keyword(s):  
Real Estate ◽  
New Technologies ◽  
Legal Aspects ◽  
Real Estate Market ◽  
Negative Consequences ◽  
The Real ◽  
The Real Estate ◽  
Market Participants ◽  
The Real Estate Market ◽  
Coronavirus Infection

The purpose of the study: all spheres of society and economy have been exposed to the coronavirus infection and are forced to adapt to new conditions and rules. The state is taking various measures to support both society and business, and is introducing new regulations designed to reduce the negative consequences of the economic shutdown. The purpose of this work is to consider the consequences that the coronavirus pandemic has had on the real estate market, to research new technologies used by market participants, and also to analyze the most significant changes in federal legislation in Russia in the context of a pandemic.

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