Abstract
The 2007 U.S. subprime mortgage crisis shows the housing market crisis could expand into the financial market. Thus, if there is an early indicator of the housing market crisis, the financial crisis can be predicted in advance. This study calculates a volatility index for housing prices and examines whether the volatility index can account for information in the housing market, such as housing prices and the rate of change. The calculated volatility index confirmed that an increase over a fall in domestic housing prices was the predominant factor, especially the continued upward pressure on housing prices since 2016. On the other hand, the housing market has shifted from an upward trend to a downward trend since the second half of 2018 with each volatile index rising. As such, the ability to explain the housing price volatility indicators calculated for changes in the housing market was identified and the volatility indicators produced by them could be used as evidence to predict the housing market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
