IDEAS home Printed from
   My bibliography  Save this book chapter

A Comprehensive Method for House Price Sustainability Assessment

In: CNB Financial Stability Report 2014/2015


  • Michal Hlavacek
  • Hana Hejlova


This article describes the house price equilibrium assessment process used by the CNB in its decision-making on macroprudential measures intended to mitigate risks associated with loan financing of residential property purchases. It first explains why it is necessary to use multiple models simultaneously to correctly assess house price sustainability. It goes on to describe the approaches the CNB currently applies to estimate house price misalignment and discusses their results. It then presents a method for aggregating the estimates produced by those approaches and provides an aggregate assessment of the results. This method indicates that Czech house prices were roughly at their equilibrium level in mid-2014 following an extended period of slight undervaluation since the third quarter of 2009.

Suggested Citation

  • Michal Hlavacek & Hana Hejlova, 2015. "A Comprehensive Method for House Price Sustainability Assessment," Occasional Publications - Chapters in Edited Volumes,in: CNB Financial Stability Report 2014/2015, chapter 0, pages 121-130 Czech National Bank, Research Department.
  • Handle: RePEc:cnb:ocpubc:fsr1415/2

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Claudio Borio & Patrick McGuire, 2004. "Twin peaks in equity and housing prices?," BIS Quarterly Review, Bank for International Settlements, March.
    2. European Commission, 2015. "Taxation trends in the European Union: 2015 edition," Taxation trends 2015, Directorate General Taxation and Customs Union, European Commission.
    3. European Commission, 2011. "Taxation trends in the European Union: 2011 edition," Taxation trends 2011, Directorate General Taxation and Customs Union, European Commission.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cnb:ocpubc:fsr1415/2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Babecky). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.