## Figure 3.14. On Average, the Global Factor for House Prices Has Increased along with That for Equities

## Source details

**Canonical URL:** [Figure 3.14. On Average, the Global Factor for House Prices Has Increased along with That for Equities](https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-14.pdf)

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### Description
- Rolling estimation with a 15-year window for the share of the variation in house and equity price growth explained by a common global factor in the dynamic factor model.
- Time coverage shown along the x-axis in quarterly observations (example labels: 1986:Q1 through 2016:Q1).
- Vertical axis labeled in percent with tick marks including 0 and 80.

### Key findings illustrated
- Both house prices and equity prices show an increasing share of their variation explained by a common global factor over the sample period.
- The global factor for house prices has, on average, increased along with the global factor for equities.
- The figure compares two series: "House prices" and "Equity prices" (legend labels as shown).

### Methodology notes
- Rolling window length: 15 years.
- Model: dynamic factor model estimating the share of variation in price growth explained by a common global factor.
- See Annexes 3.2 and 3.3 for methodology.

*Source: IMF staff estimates.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-14.pdf_