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Supply, Demand and Prices in the US Housing Market
Author(s)
Date Issued
2013-07
Date Available
2013-08-07T15:11:31Z
Abstract
The slowdown in the US economy in 2008, and in the housing market
in particular, has been accompanied by a sharp fall in house
prices and a glut of homes for sale on the market. While the idea that
this overhang of dwellings for sale should place downward pressure on
house prices is intuitive, little empirical work has been done in this area.
This paper explicitly models the relationship between changes in house prices
and various measures of housing supply. The results show that months
supply of new homes places greater downward pressure on house prices that
the months supply of existing homes. We build a small simulation model to
examine the evolution of the housing market.
in particular, has been accompanied by a sharp fall in house
prices and a glut of homes for sale on the market. While the idea that
this overhang of dwellings for sale should place downward pressure on
house prices is intuitive, little empirical work has been done in this area.
This paper explicitly models the relationship between changes in house prices
and various measures of housing supply. The results show that months
supply of new homes places greater downward pressure on house prices that
the months supply of existing homes. We build a small simulation model to
examine the evolution of the housing market.
Sponsorship
Not applicable
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP13/07
Subjects
Web versions
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
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Name
WP13_07.pdf
Size
266.48 KB
Format
Adobe PDF
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