Bubble, bubble, toil, and trouble
AbstractThe rapid rise of real estate prices in recent years has led to fears of a housing price bubble. But, to determine whether there has been a bubble–and whether the bubble is bursting–one needs to know what home prices “should” be. The authors estimate a simple model of home prices and find that prices were, on average, above their predicted levels during 2000–06. However, this result does not hold true uniformly across the country. To the extent that prices were overheating, this was happening largely in markets that have traditionally exhibited volatile prices
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Bibliographic InfoArticle provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.
Volume (Year): (2007)
Issue (Month): Q I ()
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- Raphael W. Bostic & Stanley D. Longhofer & Christian Redfearn, 2006. "Land Leverage: Decomposing Home Price Dynamics," Working Paper 8565, USC Lusk Center for Real Estate.
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The Quarterly Journal of Economics,
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- Richard J. Rosen, 2005. "Explaining recent changes in home prices," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Jul.
- Kristopher S. Gerardi & Christopher L. Foote & Paul S. Willen, 2010. "Reasonable people did disagree : optimism and pessimism about the U.S. housing market before the crash," Public Policy Discussion Paper 10-5, Federal Reserve Bank of Boston.
- Richard J. Rosen, 2011. "Competition in mortgage markets: the effect of lender type on loan characteristics," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 2-21.
- Quan Gan & Robert J. Hill, 2008. "A New Perspective on the Relationship Between House Prices and Income," Discussion Papers 2008-13, School of Economics, The University of New South Wales.
- Richard J. Rosen, 2008. "The role of lenders in the home price boom," Working Paper Series WP-08-16, Federal Reserve Bank of Chicago.
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