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Influence of Liquidity on the Housing Market before and after Macroeconomic Fluctuations
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 Title & Authors
Influence of Liquidity on the Housing Market before and after Macroeconomic Fluctuations
Lee, Young-Hoon; Kim, Jae-Jun;
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 Abstract
In the past, once apartments were built by housing construction companies, their presale went smoothly. Therefore, the developer and construction companies in Korea were extremely competitive in the housing market. However, when the 1997 foreign exchange crisis and 2008 global financial crisis occurred, the quantity of unsold new housing stocks rapidly increased, which caused construction companies to experience a serious liquidity crisis. This paper aims at analyzing the influence of Liquidity on the Housing Market before and after Macroeconomic Fluctuations using VECM. The periods from September 2001 to September 2008 and from October 2008 to October 2015, which were before and after the Subprime financial crisis, were set as Models 1 and 2, respectively. The results are as follows. First, it is important to develop a long-term policy for the housing transaction market to improve household incomes. Second, due to the shortage in the supply of jeonse housing, structural changes in the housing market have appeared. Thus, it is necessary to seek political measures to minimize the impact of transitional changes on the market.
 Keywords
Housing Jeonse Market;Housing Transaction Market;Liquidity;Macroeconomic Fluctuation;Vector Error Correction Model;
 Language
Korean
 Cited by
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