Supply, Demand and Prices in the US Housing Market
AbstractThe slowdown in the US economy in 2008, and in the housing market in particular, has been accom- panied by a sharp fall in house prices and a glut of homes for sale on the market. While the idea that this overhang of dwellings for sale should place downward pressure on house prices is intuitive, little empirical work has been done in this area. This paper explicitly models the relationship between changes in house prices and various measures of housing supply. The results show that months supply of new homes places greater downward pressure on house prices that the months supply of existing homes. We build a small simulation model to examine the evolution of the housing market.
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Bibliographic InfoPaper provided by Central Bank of Ireland in its series Research Technical Papers with number 08/RT/12.
Date of creation: Dec 2012
Date of revision:
Housing market; supply; prices;
Other versions of this item:
- Thomas Conefrey & Karl Whelan, 2013. "Supply, Demand and Prices in the US Housing Market," Working Papers, School Of Economics, University College Dublin 201307, School Of Economics, University College Dublin.
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
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