A Real Estate Note: The Relationship between Market and Population-Average Mortgage Rates

The former researches referring to inflation and real estate prices concentrated mainly on the stock prices rather than the real estate prices. Owing to the enlarging ratio of real estate industry in national economy with each passing day, as well as the overheating real estate prices in recent years, the relationship between real estate prices and inflation is particularly vital to the monetary policy making for the monetary authorities. According to the test analysis of data from 2001 to 2009, it is found that real estate prices is Granger Cause of inflation while inflation is not the Granger Cause of real estate prices in this paper. Through the Effects of Wealth, Credit and Tobin, real estate prices drive the growth of social consumption and investments and expand the total social demand which possess an positive effect on inflation; nevertheless the rising of real estate prices causes the rising of currency for real estate purchasing, which, under the circumstance of that currency supply remains, will inevitably bring about the reduction of currency for other consumption and investments and restrain the total social demand which would mean a suppression of continuous rising of prices of other commodity and labor service. All these show that real estate also has a negative effect on inflation. The cancellations between the two effects make the long-term influence real estate bearing on inflation is not obvious. The experimental results indicate that when the price of real estate rises 1%, inflation only rises 0.058%. Consequently, a strict controlling of the amount of money issued is the key factor for keeping the over rapid rising of real estate prices from leading to inflation.

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Study on the Relationship between Intellectual Capital and Financial Performance of Real Estate Companies

2010 3rd International Conference on Information Management, Innovation Management and Industrial Engineering ◽

10.1109/iciii.2010.182 ◽

2010 ◽

Author(s):

Zhang Huihui ◽

Wang Jitian

Keyword(s):

Real Estate ◽

Financial Performance ◽

Intellectual Capital ◽

The Relationship

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Asymmetric Macroeconomic Shocks and Asset Price Behaviors in Selected African Countries

Business and Economic Research ◽

10.5296/ber.v11i2.18481 ◽

2021 ◽

Vol 11 (2) ◽

pp. 90

Author(s):

Saliu Mojeed Olanrewaju ◽

Ogunleye Edward Oladipo

Keyword(s):

Real Estate ◽

Interest Rates ◽

Asset Prices ◽

Asset Price ◽

Panel Cointegration ◽

African Countries ◽

Vector Autoregressive ◽

Macroeconomic Variables ◽

Real Estate Prices ◽

The Relationship

This study examines the relationship between Asset prices (Stock and Real estate prices) and Macroeconomic variables in four selected African countries. The study employs the Westerlund Error Correction Based Panel Cointegration test and Eight-variable Structural Vector Autoregressive model to examine the relationship between asset prices and macroeconomic variables. Findings from the study confirm that no long-run relationship exists between both Asset prices and macroeconomic variables. The study equally reveals that portfolio diversification benefits of both stock and real estate markets are more pronounced in the period of a boom than the recession period in Africa. The results also show that GDP growth rate shock exerts a significant impact on both asset prices during expansion and recession periods. The study reveals that foreign interest rates and World oil price shocks are better predictors of both stock and real estate prices during the crisis period than in the expansion period.

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