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Conference Paper: Flippers in housing market search

TitleFlippers in housing market search
Authors
KeywordsSearch and matching
Housing market
Liquidity
Flippers
Issue Date2012
Citation
The 2012 Annual Meeting of the Society for Economic Dynamics (SED), Limassol, Cyprus, 22-24 June 2012. How to Cite?
AbstractWe add flippers-specialist investors who attempt to profit from buying low and selling high to a canonical housing market search model. These agents facilitate the turnover of mismatched houses on behalf of end-users and they may survive even if they face an arbitrarily large cost of financing vis-a-vis ordinary households. Multiple equilibrium may exist. In one equilibrium, most, if not all, transactions are intermediated by flippers, resulting in rapid turnover, a high vacancy rate, and high housing prices. In another equilibrium, few houses are bought and sold by these agents. Turnover is sluggish, few houses are vacant, and prices are moderate. When flippers face a lower cost of financing, their presence can, rather unexpectedly, decline. There may then be lower, not higher, housing prices to follow an interest rate decline.
DescriptionSession - Housing
Persistent Identifierhttp://hdl.handle.net/10722/190689

 

DC FieldValueLanguage
dc.contributor.authorLeung, CKYen_US
dc.contributor.authorTse, CYen_US
dc.date.accessioned2013-09-17T15:35:47Z-
dc.date.available2013-09-17T15:35:47Z-
dc.date.issued2012en_US
dc.identifier.citationThe 2012 Annual Meeting of the Society for Economic Dynamics (SED), Limassol, Cyprus, 22-24 June 2012.en_US
dc.identifier.urihttp://hdl.handle.net/10722/190689-
dc.descriptionSession - Housing-
dc.description.abstractWe add flippers-specialist investors who attempt to profit from buying low and selling high to a canonical housing market search model. These agents facilitate the turnover of mismatched houses on behalf of end-users and they may survive even if they face an arbitrarily large cost of financing vis-a-vis ordinary households. Multiple equilibrium may exist. In one equilibrium, most, if not all, transactions are intermediated by flippers, resulting in rapid turnover, a high vacancy rate, and high housing prices. In another equilibrium, few houses are bought and sold by these agents. Turnover is sluggish, few houses are vacant, and prices are moderate. When flippers face a lower cost of financing, their presence can, rather unexpectedly, decline. There may then be lower, not higher, housing prices to follow an interest rate decline.-
dc.languageengen_US
dc.relation.ispartofAnnual Meeting of the Society for Economic Dynamics, SED 2012en_US
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectSearch and matching-
dc.subjectHousing market-
dc.subjectLiquidity-
dc.subjectFlippers-
dc.titleFlippers in housing market searchen_US
dc.typeConference_Paperen_US
dc.identifier.emailTse, CY: cytse@hkucc.hku.hken_US
dc.identifier.authorityTse, CY=rp01099en_US
dc.description.naturepostprint-
dc.identifier.hkuros223740en_US

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