House Price Determinants in Selected Countries of the Former Soviet Union

Author/Editor:

Vahram Stepanyan ; Tigran Poghosyan ; Aidyn Bibolov

Publication Date:

April 1, 2010

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper analyses the recent boom-bust cycle in the housing markets of selected Former Soviet Union (FSU) countries. The analysis is based on a newly constructed database on house prices in the FSU countries. Our estimations suggest that house price developments can largely be explained by the dynamics of fundamentals, such as GDP, remittances, and external financing. Overall, we find that deviations of house prices from their fundamentals have not been pronounced, suggesting that house price bubbles have not been formed in the FSU countries.

Series:

Working Paper No. 2010/104

Subject:

Balance of payments Housing Housing prices Inflation National accounts Prices Real estate prices Remittances

English

Publication Date:

April 1, 2010

ISBN/ISSN:

9781455200634/1018-5941

Stock No:

WPIEA2010104

Pages:

15

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