scholarly journals Housing Demand, Regional House Prices and Consumption

2017 ◽  
Author(s):  
Carl Jack Liebersohn
Keyword(s):  
House Prices ◽  
Housing Demand

House prices and credit cycles: the case of Cyprus

2020 ◽  
Vol 38 (6) ◽  
pp. 539-550
Author(s):  
Dario Pontiggia ◽  
Petros Stavrou Sivitanides
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
House Prices ◽  
House Price ◽  
Equation Model ◽  
Housing Demand ◽  
Content Type ◽  
Bank Deposits ◽  
The Global Financial Crisis ◽  
Practical Implications

PurposeThe purpose of this paper is to assess whether the rapid accumulation of bank deposits before the global financial crisis and their subsequent drastic reduction was the main driving force of the Cyprus house price cycle over the period 2006–2015.Design/methodology/approachTo this aim we estimate a three-equation model in which house prices are determined by housing loans, among other factors, and housing loans are determined by bank deposits. All equations are estimated using partial adjustment model specifications.FindingsOur findings indicate that housing loans, which capture the effect of credit availability on housing demand, had the smallest effect on house prices, thus providing little support to our proposition of a deposits-driven cycle in house prices.Research limitations/implicationsThe main limitation of the study is the use of the housing loan stock instead of the actual volume of housing loans in each period due to lack of such data. As a result our econometric estimates may not accurately capture the magnitude of the effect of housing loans on house prices.Practical implicationsThe study has important practical implications for policy makers as it highlights the importance of availability of credit in supporting effective demand for housing during periods of economic growth. Furthermore, it highlights the key role of house price increases in combination with the collateral effect in driving the house price cycle.Originality/valueThis is among the few studies internationally and the first study in Cyprus that attempts to link econometrically the credit and house price cycles that were caused by the global financial crisis.

Exploring the feasibility of future housing development within existing cities

2020 ◽  
Vol 47 (2) ◽  
pp. 336-351
Author(s):  
Bart Rijken ◽  
Edwin Buitelaar ◽  
Lianne van Duinen
Keyword(s):  
Urban Areas ◽  
House Prices ◽  
Housing Demand ◽  
Housing Development ◽  
Urban Systems ◽  
Additional Contribution ◽  
Policy Debates ◽  
Science Policy Interface ◽  
Evidence Based Decision Making

In cities around the world, housing demand is increasing rapidly. Since housing supply is inelastic, house prices are rising as well, which causes affordability problems. Although there is consensus about the need to raise production, there is debate about its location: within the existing city, on underused or derelict buildings and sites, or on greenfield land outside existing city boundaries? The question we address is how researchers on the science–policy interface can support these debates and facilitate evidence-based decision-making. We address two major problems while doing this: (1) the complexity of the object at hand, that is, of the development of urban systems and (2) the politicised nature of science-for-policy. The contribution of this paper is that it links complexity theory to the literature about science-for-policy, two usually unconnected literatures. An additional contribution is that it shows how the role of the scientist as ‘honest broker’, as developed by Roger Pielke, can be operationalised and applied to existing policy debates. We do that for the Dutch debate about housing development in existing urban areas.

The Yorkshire Registries of Deeds

Urban History ◽  
1977 ◽  
Vol 4 ◽  
pp. 40-47 ◽  
Author(s):  
C. A. Archer ◽  
R. K. Wilkinson
Keyword(s):  
Economic Development ◽  
House Prices ◽  
Housing Markets ◽  
Housing Demand ◽  
Reliable Data ◽  
Supply Side ◽  
Precise Information ◽  
Urban Economic ◽  
Urban Economic Development

In recent years there has been a growing interest in the process of urban economic development and the role of housing markets in this process is as essential as it is obvious. In order to make progress towards providing answers to some of the important questions relating to the development of towns, it is necessary to try to obtain more precise information on trends in house prices, the level and structure of housing demand and the character of the supply side of the markets. Studies of local housing markets, however, have been constrained by the lack of reliable data on the most important variables and are, therefore, characteristically qualitative and descriptive. Our main objective, therefore, when embarking on the study described below, was to obtain reliable data on which to base analyses of local housing markets.

scholarly journals The sources of house price changes in Malaysia

2018 ◽  
Vol 11 (2) ◽  
pp. 335-355 ◽  
Author(s):  
Shiau Hui Kok ◽  
Normaz Wana Ismail ◽  
Chin Lee
Keyword(s):  
Exchange Rate ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Demand ◽  
Macroeconomic Shocks ◽  
Content Type ◽  
Short Run ◽  
The Interest Rate ◽  
Macroeconomic Determinants

Purpose The purpose of this paper is to examine the house market in Malaysia from 2002 to 2015. Specifically, the macroeconomic determinants on the house price and house demand are investigated. Design/methodology/approach Structural Vector Autoregressive Regression was adopted to estimate the unexpected changes in both house demand (residential transaction volume) and prices based on economic theoretical reasoning that consider shock from macroeconomic determinants. Findings The transaction volume and real house prices respond to most of the macroeconomic shocks. While the impact of real gross domestic product (GDP) on house prices appears to be stronger and longer in comparison to other macroeconomic shocks, a 60 per cent change in house prices can be explained by real GDP regardless of whether it is in the short run or the long run. The studies also reveal that a positive effective exchange rate plays an important role when demonstrating the transaction volume. Moreover, monetary liquidity plays a major role in justifying the transaction volume. This implies that mortgage lending may have an impact on housing demand. Meanwhile, movements of house prices cannot be explained by the demand in quantity. This signifies that supply has a strong influence in determining the price. Research limitations/implications This study has implications on policymakers of which the interest rate as a cooling measure might not be effective in the short run. The interest rate has very little impact on housing prices. Furthermore, policymakers should address the concerns on speculations, as the results reveal that monetary liquidity and the exchange rate have a strong impact on the housing demand. Originality/value This study seeks to provide answers regarding the recent upsurge of Malaysian housing prices. Besides focusing on the house price changes, this study addresses the role of transaction volume while evaluating the house market, as housing prices are usually downwards rigid. Since the price and transaction volume are both related to the transaction activity, this study is significant and could be a good reflection on the actual demand behaviour in the residential market.

scholarly journals SPAIN AND THE CRISIS: HOUSING PRICES, CREDIT AND MACROPRUDENTIAL POLICIES

2017 ◽  
Vol 62 (01) ◽  
pp. 109-133 ◽  
Author(s):  
MARGARITA RUBIO ◽  
JOSÉ A. CARRASCO-GALLEGO
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
House Prices ◽  
Housing Prices ◽  
Housing Demand ◽  
Housing Sector ◽  
Spanish Economy ◽  
European Monetary ◽  
Macroprudential Policies ◽  
Credit Boom

In this paper, we propose a two-country, two sector monetary union DSGE model with housing. One of the countries is calibrated to represent the Spanish economy while the other one is the rest of the European monetary union. First, we illustrate how looser credit conditions coming from the Euro area, together with increases in housing demand, lead to an increase in house prices and credit in Spain. Then, we analyze to what extent, macroprudential policies could have avoided the excess in credit that triggered the financial crisis in Spain. We find that a countercyclical loan-to-value (LTV) rule that mainly responds to house prices would have mitigated the credit boom in Spain. These results can also be applied to other countries facing similar problems in the housing sector and thinking about implementing macroprudential policies.

Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark

2021 ◽  
Vol 13 (2) ◽  
pp. 273-303
Author(s):  
Jonathan Gruber ◽  
Amalie Jensen ◽  
Henrik Kleven
Keyword(s):  
House Prices ◽  
Housing Demand ◽  
Middle Income ◽  
Financial Decisions ◽  
Mortgage Interest ◽  
Tax Subsidy ◽  
Quasi Experimental ◽  
Major Reform ◽  
Mortgage Interest Deduction ◽  
Zero Effect

Using a major reform that scaled back the mortgage interest deduction for middle- and high-income households in Denmark, we study how tax subsidies affect housing decisions. We present four main findings. First, the mortgage deduction has a precisely estimated zero effect on homeownership for high- and middle-income households. Second, the mortgage deduction has a clear effect on housing demand at the intensive margin, inducing homeowners to buy larger and more expensive houses. Third, the deduction has sizeable effects on household financial decisions, inducing them to increase indebtedness. Finally, the reduction of the tax subsidy lowered equilibrium house prices. (JEL G21, G51, H24, K34, R21, R31)

Age, housing demand, and real house prices

1996 ◽  
Vol 26 (5) ◽  
pp. 465-480 ◽  
Author(s):  
Richard Green ◽  
Patric H. Hendershott
Keyword(s):  
House Prices ◽  
Housing Demand

scholarly journals Credit Supply and the Price of Housing

2015 ◽  
Vol 105 (3) ◽  
pp. 958-992 ◽  
Author(s):  
Giovanni Favara ◽  
Jean Imbs
Keyword(s):  
Instrumental Variable ◽  
Housing Stock ◽  
House Prices ◽  
Housing Demand ◽  
Housing Supply ◽  
Credit Expansion ◽  
Credit Supply ◽  
Mortgage Credit ◽  
Supply Shock ◽  
Rule Out

An exogenous expansion in mortgage credit has significant effects on house prices. This finding is established using US branching deregulations between 1994 and 2005 as instruments for credit. Credit increases for deregulated banks, but not in placebo samples. Such differential responses rule out demand-based explanations, and identify an exogenous credit supply shock. Because of geographic diver-sification, treated banks expand credit: housing demand increases, house prices rise, but to a lesser extent in areas with elastic housing supply, where the housing stock increases instead. In an instrumental variable sense, house prices are well explained by the credit expansion induced by deregulation. (JEL G21, G28, R21, R31)

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