How do the demand and supply factors influence the number of transactions in the housing market, taking into account the disequilibrium of the market, the dependence between the demand and the supply, and the time dependency aspect?

Among the numerous studies around the housing market, most consider it in equilibrium and, as far as I know, no analyses have been conducted on the level of dependency between the supply and the demand quantities. This thesis aims to analyse this dependency through time while considering that the housing market is in disequilibrium. In this work, a survival analysis model developed by Ingrid Van Keilegom and Negera Wakgari Deresa (2019) is applied assuming that the housing market is right-censored (either the demand or the supply is observed because of the market disequilibrium feature). The data, collected from official Belgian web sites, were analysed by the survival analysis model through an autoregressive model. The outcomes show surprising coefficients directions for some variables and a significant level of dependency between the supply and the demand. The survival curves also show mostly supply quantities when the level of transaction is high. Those findings demonstrate the importance of including this dependency in the housing market models. They also change our current view of factors impact on the housing market behaviour. Finally, they help understand from which transactions number the demand will be hardly satisfied.