<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The main aim of this paper is to identify the underlying reasons for the cyclical nature of the Hungarian housing market, in particular the business cycles, the construction, and market participants’ expectations. Our research was conducted based on analysis of statistical data and of the housing market indices. As a result, it can be stated that cyclic behaviour of the housing market may be explained primarily with business cycles, but state subsidies and mortgages also affect the variations. Accordingly, the increasing lending and the high amount of subsidies can generate a price bubble. The supply of second-hand dwellings looks more flexible compared with that of new ones. However, the expectations of market operators do not have a demonstrable effect on the housing market.</p></abstract>

The main aim of this paper is to identify the underlying reasons for the cyclical nature of the Hungarian housing market, in particular the business cycles, the construction, and market participants’ expectations. Our research was conducted based on analysis of statistical data and of the housing market indices. As a result, it can be stated that cyclic behaviour of the housing market may be explained primarily with business cycles, but state subsidies and mortgages also affect the variations. Accordingly, the increasing lending and the high amount of subsidies can generate a price bubble. The supply of second-hand dwellings looks more flexible compared with that of new ones. However, the expectations of market operators do not have a demonstrable effect on the housing market.

Cycles of the Housing Market in Hungary from the Economic Crisis until Today

Lámfalussy Sándor Department of Economics

Naše gospodarstvo/Our economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Cycles of the Housing Market in Hungary from the Economic Crisis until Today"}

The main aim of this paper is to identify the underlying reasons for the cyclical nature of the Hungarian housing market, in particular the business cycles,...

Cycles of the Housing Market in Hungary from the Economic Crisis until Today

Published Online: Jun 26, 2018

Page range: 3 - 14

Received: Mar 01, 2018

Accepted: May 01, 2018

DOI: https://doi.org/10.2478/ngoe-2018-0007

Keywords
property market, housing market cycles, asset price bubble

© 2018 László Harnos, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Cycles of the Housing Market in Hungary from the Economic Crisis until Today

Published Online: Jun 26, 2018

Page range: 3 - 14

Received: Mar 01, 2018

Accepted: May 01, 2018

DOI: https://doi.org/10.2478/ngoe-2018-0007

Keywordsproperty market, housing market cycles, asset price bubble

© 2018 László Harnos, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
property market, housing market cycles, asset price bubble