Analysis of house prices in Spain

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Analysis of house prices in Spain

Author Info

Jorge Martínez Pagés () (Banco de España)
Luis Ángel Maza () (Banco de España)

Abstract

House prices in Spain have shown one of the biggest cumulative growth rates among the OECD countries over the past five years and, indeed, over a more extensive period. This paper focuses on analysing this development and its possible determinants. The evidence provided suggests income and nominal interest rates are pivotal explanatory factors, although equity returns may also have been influential in the final years of the sample. According to the estimated models, house prices are currently above their long-term equilibrium level by an amount not unlike other times in the past. Therefore, something of a correction –of an intensity difficult to estimate but not necessarily sharper than in past episodes– may be expected in the future.

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Paper provided by Banco de España in its series Banco de España Working Papers with number 0307.

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Length: 45 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:bde:wpaper:0307

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Other versions:
- François Ortalo-Magné & Sven Rady, 2005. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraint," Discussion Papers 50, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
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Other versions:
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Other versions:
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Other versions:
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Other versions:
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Malpezzi, Stephen, 1999. "A Simple Error Correction Model of House Prices," Journal of Housing Economics, Elsevier, vol. 8(1), pages 27-62, March. [Downloadable!] (restricted)
Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Ricardo Gimeno & Carmen Martínez-Carrascal, 2006. "The interaction between house prices and loans for house purchase. The Spanish case," Banco de EspaÃ±a Working Papers 0605, Banco de España. [Downloadable!]

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