Determinants of House Prices in Central and Eastern Europe

Determinants of House Prices in Central and Eastern Europe
Author: Balázs Égert
Publisher:
Total Pages: 34
Release: 2007
Genre: Housing
ISBN:

This paper studies the determinants of house prices in eight transition economies of central and eastern Europe (CEE) and 19 OECD countries. The main question addressed is whether the conventional fundamental determinants of house prices, such as GDP per capita, real interest rates, housing credit and demographic factors, have driven observed house prices in CEE. We show that house prices in CEE are determined to a large extent by the underlying conventional fundamentals and some transition-specific factors, in particular institutional development of housing markets and housing finance and quality effects.

House Price Determinants in Selected Countries of the Former Soviet Union

House Price Determinants in Selected Countries of the Former Soviet Union
Author: Vahram Stepanyan
Publisher: International Monetary Fund
Total Pages: 17
Release: 2010-04-01
Genre: Business & Economics
ISBN: 1455200638

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.

Macroprudential Policies and House Prices in Europe

Macroprudential Policies and House Prices in Europe
Author: Mr.Marco Arena
Publisher: International Monetary Fund
Total Pages: 51
Release: 2020-02-20
Genre: Business & Economics
ISBN: 1513512250

Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.

Don't Look Up: House Prices in Emerging Europe

Don't Look Up: House Prices in Emerging Europe
Author: Mr. Serhan Cevik
Publisher: International Monetary Fund
Total Pages: 23
Release: 2022-12-02
Genre: Business & Economics
ISBN:

This paper investigates how housing prices respond to economic, financial and demographic conditions in emerging markets in Europe. We use quarterly data covering 10 countries over the period 1998–2022 and implement a panel quantile regression approach to obtain a granular analysis of real estate markets. Overall, economic, financial and demographic factors explain the changes in real house prices in emerging Europe, with income growth having the most significant impact. Quantile regression estimations show that income growth matters more for higher housing prices than those at the lower quantiles of the property market. We also find that an increase in short-term or long-term interest rates have a price-dampening impact, indicating that a higher cost of borrowing is associated with lower real house prices. These results indicate that the downturn in house prices could deepen with the looming economic recession and soaring interest rates.

Macroprudential Policies and Housing Price

Macroprudential Policies and Housing Price
Author: Mr.Jerome Vandenbussche
Publisher: International Monetary Fund
Total Pages: 36
Release: 2012-12-27
Genre: Business & Economics
ISBN: 1475587449

Several countries in Central, Eastern and Southeastern Europe used a rich set of prudential instruments in response to last decade’s credit and housing boom and bust cycles. We collect detailed information on these policy measures in a comprehensive database covering 16 countries at a quarterly frequency. We use this database to investigate whether the policy measures had an impact on housing price inflation. Our evidence suggests that some—but not all—measures did have an impact. These measures were changes in the minimum CAR and non-standard liquidity measures (marginal reserve requirements on foreign funding, marginal reserve requirements linked to credit growth).

Housing Market Challenges in Europe and the United States

Housing Market Challenges in Europe and the United States
Author: P. Arestis
Publisher: Springer
Total Pages: 283
Release: 2009-11-18
Genre: Business & Economics
ISBN: 0230246982

Housing finance structures and Institutional and regulatory/fiscal aspects in housing have changed significantly in recent years. This book examines the development in housing markets in Europe and the US, and looks at ways to make housing more affordable and housing market developments more stable.

Real Convergence in Central, Eastern and South-Eastern Europe

Real Convergence in Central, Eastern and South-Eastern Europe
Author: R. Martin
Publisher: Springer
Total Pages: 221
Release: 2009-02-27
Genre: Business & Economics
ISBN: 0230235433

This book brings together policymakers, high-level practitioners, academics, and experts from central banks and international institutions in order to review key policy challenges for convergence in the region of central, eastern and south-eastern Europe. Contributions focus especially on inflation, growth, migration and the balance of payments.

House Price Developments in Europe

House Price Developments in Europe
Author: Angana Banerji
Publisher: International Monetary Fund
Total Pages: 66
Release: 2008-09-01
Genre: Business & Economics
ISBN: 1451870698

House prices in Europe have shown diverging trends, and this paper seeks to explain these differences by analyzing three groups of countries: the "fast lane", the average performers, and the slow movers. Price movements in the first two groups are found to be driven mostly by income and trends in user costs, and housing markets in these countries seem relatively more susceptible to adverse developments in fundamentals. Real house price declines among the slow movers are harder to explain, although ample supply, low home ownership, and less complete mortgage markets are likely factors. The impact of macroeconomic, prudential and structural policies on housing markets can be large and should be a factor in policy decisions.