Examination of the dynamics of house prices in urban Ghana

Resumen:
The paper examines the main macroeconomic determinants of house price movements in Accra, the capital of Ghana using the VECM. The results show that the main drivers of price movements in the housing market in Accra are GDP growth, unemployment and interest rates, and there is no long-term relationship between these significant variables and house prices in the country. Any short-term disequilibrium is not able to correct itself over the long-term; hence the fundamentals do not explain the price changes in the long run. The study, which is a novelty in Ghana has produced results with policy implications in dealing with housing affordability and promoting residential market in general.