| Title |
The Empirical Study on the Correlation Between House Sale Price and the Winning Bid to Appraised Price Ratio |
| Keywords |
House Sale Price ; The Winning Bid to Appraised Price Ratio ; Vector Error Correctin Mode(VECM) |
| Abstract |
In this study, the dynamic correlation between CD rates, the winning bid to appraised price ratio of apartment in Seoul, the number of auction of apartment in Seoul, and the selling price of apartment in Seoul was analyzed based on the monthly data from July 2002 to March 2013. The long-term equilibrium relationship between the variables existed, VECM was composed and the long-term equilibrium formula was estimated. As a result of the impulse response analysis, it is shown that the selling price has negative (-) correlation with the CD rate, positive (+) correlation with the winning bid to appraised price ratio, and negative (-) correlation with the number of auction, which is consistent with the general economic logic and the sign of the long-term equilibrium formula as the co-integration test result. Through the empirical analysis, it is found that the auction market has a causal relationship and the long-term equilibrium relationship with actual house market. |