Examine the relationship between financial markets and Housing market

Subject Areas : Financial engineering

Shahram Vahedi ¹ , farhad hanifi ² , mirfeiz fallah ³ , seyyedjalal sadeghisharif ⁴

1 - Department of Management, Faculty of Management, United Arab Emirates Branch, Islamic Azad University, Dubai, United Arab Emirates.
2 - Department of Business Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Business Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
4 - Department of Financial Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

Received: 2019-10-26 Accepted : 2019-12-17 Published : 2019-12-22

Keywords: Financial Markets, Housing market, Vector Self-Regression, Monetary Markets,

Abstract :

The analysis of the turbulence among markets has been widely applied and in details the emphasis on theorists and researchers in different fields. The reciprocal relationship between financial markets and the macroeconomic markets is based on the idea, which has negative shocks to the economy of the housing sector. The behavior of the housing market is also important because of the impact of housing prices on bank loans and other financial institutions. In the housing sector, a monetary and monetary policy is expected to increase demand for housing by increasing the volume of money in the asset portfolio. Of course, this will depend on a variety of issues. Therefore, the need for further reflection seems necessary in this part. In this study, using the time series analysis of vector regression (VAR), the relationship between financial and financial markets has been investigated. The results of the study show that financial markets, especially foreign exchange markets and gold markets have a significant relationship with housing.

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