Pricing and the housing balloon in the housing market: A research in TR22 (Balikesir-Canakkale) region

Shelter and settlement are assumed as the basic needs of people from past to present. This need is provided by housing. Housing is a property with many functions. With the increase in the value of the house day by day, it is accepted as a consumption good that provides both investment and housing needs for individuals and households. In addition, the house becomes a property that provides rental income if its owner gives it to someone else for a certain amount of time and for a certain price. In this study, the formation and change of housing prices were investigated by taking into account the factors specific to our country. The increase in housing prices across the country has placed the question of whether there is a housing bubble. As a result of this housing bubble analysis for Balikesir and Canakkale provinces, it is seen that it would be a very difficult interpretation to talk about the housing bubble in general. However, in some periods, it has been determined that the prices have increased considerably and even the housing bubble has come very close to its critical value. However, it is thought that housing bubbles can be prevented as a result of taking into account the compatibility of housing supply and demand, control and regulation of the state, effective use and correct creation of price indices, and preventing speculative movements in the market.