The implication of financial conditions in the housing market-a cointegrated analyses

The latest financial crisis emphasized the importance of the housing market in the economy. The comprehensive assessment of house price determinants has gained more importance among academic studies. This study aims to assess the role of some financial factors in the performance of house prices for Albania through the VECM cointegration analysis. The empirical findings show that house prices are influenced positively by bank lending, and negatively by the Treasury bills yield, in the long term. The inclusion of the exchange rate in the empirical analysis in determining the house prices is a novelty of this study.