The House Price Bubble Ends, the Foreclosure Wave Begins

2013 ◽  
Keyword(s):  
House Price ◽  
Price Bubble ◽  
House Price Bubble

scholarly journals Empirical Analysis of House Price Bubble: A Case Study on Malaysia

2016 ◽  
Vol 11 (12) ◽  
pp. 127
Author(s):  
Fong Kean Yan ◽  
Yap Lya Keng ◽  
Kwek Kien Teng
Keyword(s):  
Gross Domestic Product ◽  
House Prices ◽  
House Price ◽  
Domestic Product ◽  
Price Bubble ◽  
Long Run ◽  
Residential Properties ◽  
Short Run ◽  
Per Capita ◽  
House Price Bubble

The main objective of this research is to investigate the relationship between house price with macroeconomics variables - Gross Domestic Product per capita, inflation rate, Base Lending Rate and amount of household loan disbursed for purchase of residential properties. We try to use these variables to examine if they could trigger a housing bubble to burst in Malaysia. Granger Causality results show that there is univariate relationship from house price to Gross Domestic Product per capita. Though house price and other macroeconomics variables do not Granger–cause each other in short run, but these variables are cointegrated in the long run, i.e. there is no evidence of house price bubble in Malaysia. We suggest that soaring house prices in Malaysia is being supported by the large inflow of foreign funds into the housing sector and the unresponsive supply of houses.

Good Inflation, Bad Inflation: The Housing Boom, Economic Growth and the Disaggregation of Inflationary Preferences in the UK and Ireland

2009 ◽  
Vol 11 (3) ◽  
pp. 461-478 ◽  
Author(s):  
Colin Hay
Keyword(s):  
Monetary Policy ◽  
House Price ◽  
Private Debt ◽  
Price Inflation ◽  
Mortgage Interest ◽  
Price Bubble ◽  
Housing Boom ◽  
Time Inconsistent ◽  
The Uk ◽  
House Price Bubble

This article presents a comparative analysis of the determinants, sustenance and broader macroeconomic consequences of the ultimately unsustainable housing boom in Ireland and the UK in recent years. It examines, in particular, the role played by ostensibly depoliticised monetary policy in both contexts in the development of a house price bubble that has served to fuel consumer-led growth. It assesses the viability, sustainability and reproducibility of the private debt-financed consumer boom that house price inflation has generated. In the process it draws attention to the increasingly differentiated character of both government inflationary preferences and counter-inflationary performance—with the shift to official measures of inflation that exclude mortgage interest repayments and, in the UK at least, to the covert re-politicisation of monetary policy. It concludes by suggesting that governments may well not have time-inconsistent inflationary preferences so much as sectorally specific inflationary preferences. This might be summarised in terms of the aphorism: ‘retail price inflation bad, house price inflation good’.

scholarly journals The Regional Pattern of the U.S. House Price Bubble – An Application of SPC to City Level Data

2015 ◽  
Vol 66 (2) ◽  
Author(s):  
Julia Freese
Keyword(s):  
Asset Price ◽  
House Price ◽  
Statistical Process ◽  
Asset Price Bubbles ◽  
Price Bubbles ◽  
Ewma Control Chart ◽  
Price Bubble ◽  
Level Data ◽  
Starting Point ◽  
House Price Bubble

AbstractThe recent U.S. house price bubble and the subsequent deep financial crisis have renewed the interest in reliable identification methods for asset price bubbles. While there is a growing number of studies focussing on the detection of U.S. regional bubbles, estimations of the likely starting points in different local U.S. markets are still rare. Using regional data from 1990 to 2010 methods of Statistical Process Control (SPC) are used to test for house price bubbles in 17 major U.S. cities. Based on the EWMA control chart we also present estimations of the likely starting point of the regional bubbles. As a result, we find indications of house price bubbles in all 17 considered cities. Interestingly enough, the recent bubble was not a homogeneous event since regional starting points range from 1996 to 2002.

The case of housing

2021 ◽  
pp. 71-86
Author(s):  
Rajiv Prabhakar
Keyword(s):  
Global Financial Crisis ◽  
Home Ownership ◽  
House Price ◽  
Financial Inclusion ◽  
Individual Development ◽  
Special Role ◽  
Price Bubble ◽  
The Global Financial Crisis ◽  
House Price Bubble

This chapter studies the case of housing. The figure of the 'investor-subject', which is key to the critique of financial inclusion policy, highlights the importance of considering the special role of housing for at least two reasons. First, housing is arguably the most important investment that is made by investor-subjects. For example, Individual Development Accounts (IDAs) are supposed to be used for three main aims, namely, paying for training, starting a business, or putting down a deposit on a home. In fact, critics of asset-based welfare claim that this specific policy agenda is focused mainly on boosting home ownership and so there is now a literature that is dubbed 'housing asset-based welfare'. Second, investors often have to borrow on mortgage markets to pay for a home. This highlights that 'borrowing to invest' is a key part of an investor-subject approach. Critics say that 'borrowing to invest' led to record levels of personal indebtedness and fuelled a house price bubble that was one of the triggers for the global financial crisis of 2007–08. For critics, this shows that the financial inclusion agenda contributed directly to the instability within the economy. The chapter argues that financial inclusion need not necessarily lead to a house price bubble and instead might be used to open up debates about the nature of home ownership.

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