Teodor Skotarczak
The Phenomenon of an Overreaction on the Housing Market
Purpose - The aim of the research is to verify the thesis on the occurrence of the phenomenon of over-reaction on the real estate market of investment premises and the accompanying correction of asset prices, as well as to calculate the rate of return using a contrarian investment strategy.
Design/methodology/approach - The study considered transaction prices and the number of transactions obtained by the National Bank of Poland and reported in the Real Estate Market Analysis and Monitoring System (AMRON).
Findings - The number of transactions involving investment premises for residential purposes changed little in the period under review. This was due to the low supply and maintenance of real estate as stable security for capital and quick access to invested funds due to the high liquidity of these premises.
Research limitations - A limitation of the study was the need to use two different databases, which although they should be compatible revealed methodological differences.
Research implications - The research conducted implies the need for broader research on the impact of location on the real estate market in Poland in particular investment areas.
Keywords: property market; over-reaction phenomenon; residential property
JEL codes: R31, R33
Article type: research article
CITATION (APA): Skotarczak, T. (2021). The Phenomenon of an Overreaction on the Housing Market. World of Real Estate Journal, 115(1), 48-67.
DOI: https://doi.org/10.14659/WOREJ.2021.115.03
