What Drives Housing Price Dynamics: Cross-Country Evidence

Tsatsaronis, Kostas; Zhu, Haibin

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What Drives Housing Price Dynamics: Cross-Country Evidence

BIS Quarterly Review, March 2004

14 Pages Posted: 4 May 2012 Last revised: 26 Jun 2013

See all articles by Kostas Tsatsaronis

Kostas Tsatsaronis

Bank for International Settlements (BIS) - Monetary and Economic Department

Haibin Zhu

Bank for International Settlements (BIS)

Date Written: March 1, 2004

Abstract

House prices generally depend on inflation, the yield curve and bank credit, but national differences in the mortgage markets also matter. House prices are more sensitive to short-term rates where floating rate mortgages are more widely used and more aggressive lending practices are associated with stronger feedback from prices to bank credit.

JEL Classification: G120, G210, C320

Suggested Citation: Suggested Citation

Tsatsaronis, Konstantinos and Zhu, Haibin, What Drives Housing Price Dynamics: Cross-Country Evidence (March 1, 2004). BIS Quarterly Review, March 2004, Available at SSRN: https://ssrn.com/abstract=1968425