Dynamic relationship between investor attention and house prices: Evidence from Australian housing market
Nguyen Thi Tuyet Anh et al.
What the paper says
This paper examines the interrelationships between investor attention and house prices. We find that investor attention significantly influences house prices in both short term and long term. Conversely, significant changes in house prices heighten investor attention, leading to increased market activity. This reciprocal relationship between investor attention and house prices is confirmed through VAR model analysis. Granger causality tests, variance decomposition and impulse response functions were also used to investigate the dynamic of the variables in the empirical model. Our findings have several implications for policymakers, real estate investors, and market analysts. Policymakers should focus on managing short-term volatility in house prices to stabilise investor behaviour, while investors should avoid overreacting to short-term price movements. The study findings suggest that incorporating behavioural factors into economic models can enhance our understanding and improve the prediction of housing market trends.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.