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Evolution of Housing Prices in Chile

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Listed:
  • Eric Parrado H. /
  • Paulo Cox P.
  • Marcelo Fuenzalida C.

Abstract

The availability of real estate data is clearly limited in Chile, which makes more complex the discussion of the possible vulnerabilities of households and the financial sector to risks arising from real estate markets. This paper proposes a set of housing price indicators for measuring the potential pressures that could be developing in the credit market. Using these price measures, we find that the recent sustained rise in home prices coincides with the sustained increase in disposable income and the decreasing trend of long-term interest rates, factors that have strongly driven the expansion of mortgage loans.

Suggested Citation

  • Eric Parrado H. / & Paulo Cox P. & Marcelo Fuenzalida C., 2009. "Evolution of Housing Prices in Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 12(1), pages 51-68, April.
    • Handle: RePEc:chb:bcchec:v:12:y:2009:i:1:p:51-68
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    References listed on IDEAS

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    Cited by:

    1. Ruprah, Inder J. & Marcano, Luis, 2007. "A Meta-Impact Evaluation of Social Housing Programs: The Chilean Case," IDB Publications (Working Papers) 2834, Inter-American Development Bank.
    2. Micco, Alejandro & Parrado, Eric & Piedrabuena, Bernardita & Rebucci, Alessandro, 2012. "Housing Finance in Chile: Instruments, Actors, and Policies," IDB Publications (Working Papers) 3965, Inter-American Development Bank.
    3. Gil-Alana, Luis Alberiko & Dettoni, Robinson & Costamagna, Rodrigo & Valenzuela, Mario, 2019. "Rational bubbles in the real housing stock market: Empirical evidence from Santiago de Chile," Research in International Business and Finance, Elsevier, vol. 49(C), pages 269-281.
    4. Paulo Cox & Eric Parrado & Jaime Ruiz-Tagle, 2006. "Distribution of Assets, Debt, and Income of Chilean Households," Working Papers Central Bank of Chile 388, Central Bank of Chile.

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