Work detail

Family House Market in Europe during the Recent Crisis

Author: Mgr. Adam Béreš
Year: 2015 - winter
Leaders: PhDr. Pavel Vacek Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 69
Awards and prizes:
Abstract: This thesis analyzes family house market in seven European
countries: the Czech Republic, Austria, Belgium, Denmark,
Germany, Finland and Slovakia, together with two cities:
Bratislava and Prague. The main goal is to compare family
house price determinants in transitional countries with
developed ones and capture possible effects of the recent
economic crisis. In the first part, panel data models are
employed to determine price determinants and any housing
bubbles. Real GDP growth rate as a proxy for households'
income, together with housing loan interest rate proved to be
significant price determinant for both groups. Housing market
in transitional countries is influenced only by demand side
factors like unemployment. Housing market in developed
countries is led by demand and supply side factors represented
by labor cost index. In the second part of the analysis, VAR
model is employed, for each country separately, to detect how
price determinants contribute to the variance of real house
prices. The results vary between the countries. The housing
price persistence is common for all countries except for
Germany and Denmark.




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