Hot and cold seasons in the housing market

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Every year housing markets in the United Kingdom and the United States experience systematic above-trend increases in prices and transactions during the spring and summer ("hot season") and below-trend falls during the autumn and winter ("cold season"). House price seasonality poses a challenge to existing housing models. We propose a search-and-matching model with thick-market effects. In thick markets, the quality of matches increases, rising buyers' willingness to pay and sellers' desire to transact. A small, deterministic driver of seasonality can be amplified and revealed as deterministic seasonality in transactions and prices, quantitatively mimicking seasonal fluctuations in UK and US markets.

JEL-codes: C78 R21 R31 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-dge and nep-ure
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Citations: View citations in EconPapers (106)

Published in American Economic Review, December, 2014, 104(12), pp. 3991-4026. ISSN: 0002-8282

Downloads: (external link)
http://eprints.lse.ac.uk/63659/ Open access version. (application/pdf)

Related works:
Journal Article: Hot and Cold Seasons in the Housing Market (2014)
Working Paper: Hot and Cold Seasons in the Housing Market (2013)
Working Paper: Hot and cold seasons in the housing market (2013)
Working Paper: Hot and Cold Seasons in the Housing Market (2009)
Working Paper: Hot and cold seasons in the housing market (2009)
Working Paper: Hot And Cold Seasons in the Housing Market (2009)
Working Paper: Hot and cold seasons in the housing markets (2008)
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