The authors study the responses to several questions related to real estate that were added to the Michigan Survey of Consumers in July and August 2011. In particular, they asked about attitudes toward renting versus buying a home, about commuting, and about how much to spend on a mortgage. By...

This paper examines whether the Mortensen-Pissarides matching model can account for the housing markets facts, most of all the empirical anomaly known as ‘price dispersion’. Our main finding is that the model can account for the three basic facts of housing market, without any restrictive...

In this paper, I explore and explain how buy-to-let investors affect housing price dynamics. The impact of buy-to-let investors on the housing market is much discussed by policy makers, but previously not considered in the literature. I develop a structural search model that allows housing...

We review the existing literature on the causes of vacancies in the housing market. First, we present a detailed overview of theoretical approaches that may explain the mechanisms causing vacancies under the assumptions of a standard market model, the search and matching theory and behavioral...

It is widely believed that tenant-occupied houses do not show as well as owner-occupied or even vacant units and are harder to sell. These short term or transitory marketing effects should disappear in subsequent sales by owner-occupiers. Overuse by tenants and poor maintenance by landlords,...

The choice of marketing system used to allocate property rights is important across many industries. In Scotland, two systems of marketing real property co-exist: fixed price, where homes are listed for sale at a fixed price on "first-come-first-serve" basis, and offers over, which is a...

In this model buyers and sellers enter a housing market with imperfect elasticity. Buyers screen houses for sale in two segments of the market, select a set of houses for search in each segment, and then control their intensities of search among houses in their preferred sets. Their truncated...

While the average change in house prices is related to changes in fundamentals or perhaps market-wide bubbles, not all houses in a market appreciate at the same rate. The primary focus of our study is to investigate the reasons for these variations in price changes among houses within a market....

I develop a dynamic search model of the housing market in which prices, determined by auction, exhibit greater volatility than prices in the search and matching model with Nash bargaining from the literature. This helps solve the puzzle of excess volatility of house prices. The outcomes of the...

I develop a tractable dynamic model of the housing market where the prices are determined in auctions rather than by Nash bargaining as in the housing search model from the literature. The model with auctions mimics the actual housing markets by generating fluctuations between the booms and...