Fundamental Drivers of House Prices in Advanced Economies

Author/Editor:

Nan Geng

Publication Date:

July 13, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

House prices in many advanced economies have risen substantially in recent decades. But experience indicates that housing prices can diverge from their long-run equilibrium or sustainable levels, potentially followed by adjustments that impact macroeconomic and financial stability. Therefore there is a need to monitor house prices and assess whether they are sustainable. This paper focuses on fundamentals expected to drive long run trends in house prices, including institutional and structural factors. The scale of potential valuation gaps is gauged on the basis of a cross-country panel analysis of house prices in 20 OECD countries.

Series:

Working Paper No. 18/164

Subject:

English

Publication Date:

July 13, 2018

ISBN/ISSN:

9781484367629/1018-5941

Stock No:

WPIEA2018164

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

24

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