Hot and Cold Seasons in the Housing Market

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 12
Pages: 3991-4026

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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 C78, R21, R31)

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:12:p:3991-4026
Journal Field
General
Author Count
2
Added to Database
2026-01-26