Supply, Demand and Prices in the US Housing Market
AbstractThe slowdown in the US economy in 2008, and in the housing mark et in particular, has been accompanied 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 than 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 School Of Economics, University College Dublin in its series Working Papers with number 201307.
Length: 48 pages
Date of creation: 24 Jul 2013
Date of revision:
Housing market; supply; prices;
Other versions of this item:
- Conefrey, Thomas & Whelan, Karl, 2012. "Supply, Demand and Prices in the US Housing Market," Research Technical Papers 08/RT/12, Central Bank of Ireland.
- 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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