Abstract
Value changes in the real estate market affect both the quality of bank loan portfolios and financial stability and the real economy. The Republic of Serbia is one of the countries facing an upward trend in demand for housing. This paper investigates the impact of macroeconomic and banking variables on the real estate price index in Serbia for the period from 2014 to 2023 on a quarterly basis. Also, panel regression and correlation analysis are applied in this research. The selected independent (explanatory) variables are the gross domestic product, the consumer price index, the interest rate on bank loans, the exchange rate of the domestic currency against the Euro and household saving. The research results showed that the independent variable consumer price index had the most significant impact on the housing price index. On the other hand, the following independent variables had the most significant negative impact on the dependent variable (housing price index): interest rate on bank loans and the domestic currency against the Euro.
Publisher
Centre for Evaluation in Education and Science (CEON/CEES)
Reference43 articles.
1. Ahearne, A. G., Ammer, J., Doyle, B.M., Kole, L.S. Martin, R. F. (2005). House Prices and Monetary Policy: A Cross-Country Study, Board of Governors of the federal Reserve System, International Finance Discussion Papers, No. 841, pp. 1-67;
2. Allen, J., Amano, R., Byrne, D.P., Gregory, A.W. (2009). Canadian City Housing Prices and Urban Market Segmentation. Canadian Journal of Economics. Vol. 42, pp. 1132-1149;
3. Anas, A., Eum, S.J. (1984). Hedonic Analysis of a Housing Market in Disequilibrium. Journal of Urban Economics, Vol. 15, pp. 87-106;
4. Andrews, D. (2010). Real House Prices in OECD Countries: The Role of Demand Shocks and Structural and Policy Factors, OECD Economics Department Working Papers, No. 831, OECD Publishing;
5. Asal, M. (2018). Long-Run Drivers and Short-Term Dynamics of Swedish Real House Prices. International Journal of Housing Markets and Analysis, 11, pp. 45-72;