Co-moving systems with explosive regressors and time-varying volatility: Evidence from the Spanish housing market

Key Points

• Co-moving systems with explosive regressors influence trends in the Spanish housing market, revealing significant economic patterns.
• Findings indicate a notable volatility in property values during specific economic periods, notably influencing buyers and investors.
• Analysis of economic indicators provides insight into how time-varying volatility affects housing prices in Spain.
• Implications for housing policies emerge, including the need for strategies to manage market fluctuations and ensure stability.