The standard deviation of changes in sales volume for the period 2011-2022 is more than twenty times higher than that of house prices. To account for the fact that the volatility of sales volume is greater than that of house prices, I introduce a dynamic search-matching model of the housing market with a feature incorporating simultaneous selling and buying activities within a given period of time. I integrate four distinct shocks into the model to account for the volatilities in housing prices and sales volume: a shock that encompasses owner
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Weh-Sol Moon (2023) studied this question.
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