The relationship between house prices and house purchase loans: The Spanish case

Gimeno, Ricardo; Martínez-Carrascal, Carmen

doi:10.1016/j.jbankfin.2009.12.011

Cited by 121 publications

(102 citation statements)

References 12 publications

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“…15 There is also a range of recent papers that confirm the empirical relevance of a financial accelerator effect in a housing context, see e.g. Fitzpatrick and McQuinn (2007); Berlinghieri (2010); Gimeno and Martinez-Carrascal (2010); Anundsen and Jansen (2013) for evidence from Ireland, the US, Spain and Norway, respectively.…”

Section: House Pricesmentioning

confidence: 98%

Bubbles and Crises: The Role of House Prices and Credit

Anundsen

Gerdrup²,

Hansen³

et al. 2014

SSRN Journal

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Section: House Pricesmentioning

confidence: 98%

Bubbles and Crises: The Role of House Prices and Credit

Anundsen

Gerdrup²,

Hansen³

et al. 2014

SSRN Journal

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“…The results reveal a relative narrowing of the estimated deviations of apartment prices from equilibrium over time, closer to the estimates obtained using Approach I (supply and demand model). This is probably due partly to the estimation method, as the speed of this house price convergence (which, due to the use of a linear trend, is implicitly 8 For applications of similar models, see Gimeno and Martinez (2010) for Spain and Iacoviello (2002) for European countries.…”

Section: Approach Ii: Accelerator Modelmentioning

confidence: 99%

A Comprehensive Method for House Price Sustainability Assessment in the Czech Republic

Hejlová¹,

Hlaváček²,

Komarek³

2017

Prague Economic Papers

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The article describes approach proposed for the house price equilibrium assessment in the Czech Republic. It first explains why it is necessary to use multiple models simultaneously to correctly assess house price sustainability. It goes on to describe individual models proposed to estimate house price misalignment in the Czech Republic. Results given by these individual models are consonant in identifying periods of over-and undervaluation of house prices but slightly differ in the amplitude of the gaps. A method for aggregating the estimates produced by those approaches is then presented. It works on the premise that more correlated estimates may be evidence of a strong signal, while less correlated estimates may, on the other hand, bring additional information to the house price assessment. By using two sets of weights, it presents an interval of supposed under-or overvaluation of house prices. This method indicates that Czech house prices were roughly at their equilibrium level in mid-2014 following an extended period of slight undervaluation since the mid-2009. It also proves robust to the length of the sample used.

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“…The findings generally support bidirectional causality. (See Anundsen & Jansen 2012;Berlinghieri, 2010;Oikarinen, 2009a;Oikarinen, 2009b;Sophocles & Vlassopoulos, 2009;Fitzpatrick & McQuinn, 2007;Gerlach & Peng, 2005;Gimeno & Martinez-Carrascal, 2010;Hoffman, 2004;Hoffman, 2003. ) A related question the literature addresses is whether the rise in house prices is associated with greater reliance on risk-based pricing allowing for lower credit scores, and low-or nodocumentation (low-, no-doc) mortgages (see Getter, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Borrowing constraints during the housing bubble

Barakova

Calem

Wächter

2014

Journal of Housing Economics

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The impact of borrowing constraints on homeownership has been well established in the literature. Wealth is most likely to restrict homeownership followed by credit and income. Using recent movers from the 1979 National Longitudinal Survey of Youth and borrowing constraint definitions commonly used in the literature, we examine the impact of these constraints on the probability of homeownership during the housing market boom between 2003 and 2007. We show that whereas the pool of financially constrained households expanded, the marginal impact of borrowing constraints associated with income and credit quality declined during this period. The constraint associated with wealth, however, continued to have a negative impact on homeownership status, all else equal. The fact that lending standards became less strict is accepted; however the impact of this on homeownership has not been previously studied. Here we find that less restrictive underwriting does appear to have reduced the impact of income and credit quality on homeownership but the impact of the wealth constraint persists. AbstractThe impact of borrowing constraints on homeownership has been well established in the literature. Wealth is most likely to restrict homeownership followed by credit and income. Using recent movers from the 1979 National Longitudinal Survey of Youth and borrowing constraint definitions commonly used in the literature, we examine the impact of these constraints on the probability of homeownership during the housing market boom between 2003 and 2007. We show that whereas the pool of financially constrained households expanded, the marginal impact of borrowing constraints associated with income and credit quality declined during this period. The constraint associated with wealth, however, continued to have a negative impact on homeownership status, all else equal. The fact that lending standards became less strict is accepted; however the impact of this on homeownership has not been previously studied. Here we find that less restrictive underwriting does appear to have reduced the impact of income and credit quality on homeownership but the impact of the wealth constraint persists.

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The relationship between house prices and house purchase loans: The Spanish case

Cited by 121 publications

References 12 publications

Bubbles and Crises: The Role of House Prices and Credit

Bubbles and Crises: The Role of House Prices and Credit

A Comprehensive Method for House Price Sustainability Assessment in the Czech Republic

Borrowing constraints during the housing bubble

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