The Swedish Real Estate Market and Macroeconomic Factors
The real estate market has been of great interest since the rise in home foreclosures inUS, which started in the late 2006. The purpose of this thesis is to examine a possiblerelationship between the factors presented in DiPasquale and Wheaton’s (1996) modelwhich explains the market linkages between the property market and asset market, andthe Swedish real estate companies listed on the Swedish stock market OMX. The realestate stock market is, divided in to groups of 3, which represented the dependentvariable. The repo rate, CPI, expected inflation, macro index, disposable income, GDPand a real estate price index are the explanatory variables. Stockholm Stock Market All-Share Index (OMXSPI) is also included as a possible explanatory variable.The main findings in most of the estimations for the groups and years, is that theOMXSPI is of significance at the 10 percent level. The other variables did not show anysignificant result based on the 10 percent significance level,According to the results it seems like the volatility has increased over time in the realestate stock market with respect to the OMXSPI. That is; the risk has increasedsignificantly from the period 1996-1999 to the later periods.
School:Högskolan i Jönköping
Source Type:Master's Thesis
Keywords:macroeconomic variables multiple regression analysis stock market real
Date of Publication:04/08/2008