Housing market early warning system: The case of Korea

Seoung Hwan Suh, Kabsung Kim, Jae Sik Jeon

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


In the present paper, an early warning system (EWS) for the Korean housing market is constructed. The housing market pressure index is defined as the maximum value of the rates of changes in sales and rental price indexes of the nation and of a specific area. The critical value of HMPI is determined using its mean and standard deviation. With the signal approach model, we find 15 effective leading indicators. Furthermore, the explanatory power of the housing market crisis composite index determined using the leading indicators is satisfactory. Hence, the model developed in the current paper can be used as the EWS of the Korean housing market.

Original languageEnglish
Pages (from-to)539-547
Number of pages9
JournalEuropean Journal of Scientific Research
Issue number4
Publication statusPublished - 2011 Jul

All Science Journal Classification (ASJC) codes

  • General Computer Science
  • General Mathematics
  • General Materials Science
  • General Agricultural and Biological Sciences
  • General Engineering
  • General Earth and Planetary Sciences


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