The Short and the Long of It: Stock-Flow Matching in the US Housing Market
Abstract: This paper investigates the US housing market from just before the Great Recession onward (2006–19) and assesses the viability of stock-flow matching in generating the observed outcomes. The paper documents that the probability that a house sells declines sharply after listing for two weeks. Moreover, the probability and associated price of a fast sale recover from the housing slump sooner, faster, and more prominently than slower sales. The simulated stock-flow matching model can mimic not only sales, prices, listings, and time-on-market but also capture the distinctions in quick and slower trades, indicating the importance of stock-flow matching for understanding housing market dynamics.
Status: Published in 2022
File(s): File format is application/pdf https://www.atlantafed.org/-/media/documents/research/publications/wp/2022/10/20/15--stock-flow-matching-in-us-housing-market.pdf
Provider: Federal Reserve Bank of Atlanta
Part of Series: FRB Atlanta Working Paper
Publication Date: 2022-10-20