Global Housing Cycles

57 Pages Posted: 1 Nov 2012

See all articles by Deniz Igan

Deniz Igan

International Monetary Fund (IMF) - Financial Studies Division

Prakash Loungani

International Monetary Fund (IMF)

Date Written: August 2012

Abstract

Housing cycles and their impact on the financial system and the macroeconomy have become the center of attention following the global financial crisis. This paper documents the characteristics of housing cycles in a large set of countries, and examines the determinants of house price movements. Empirical analysis shows that house price dynamics are mostly driven by income and demographics but fluctuations in these fundamentals and credit conditions can create deviations from the implied equilibrium path. We conclude with a discussion of the macroeconomic implications of house price corrections.

Keywords: Housing Cycles, Mortgage Markets, Developed Countries, Emerging Markets, Financial Systems, Housing Prices

JEL Classification: E32, E44, F40

Suggested Citation

Igan, Deniz and Loungani, Prakash, Global Housing Cycles (August 2012). IMF Working Paper No. 12/217. Available at SSRN: https://ssrn.com/abstract=2169761

Deniz Igan (Contact Author)

International Monetary Fund (IMF) - Financial Studies Division ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Prakash Loungani

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-7043 (Phone)
202-623-4740 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
292
Abstract Views
931
rank
102,490
PlumX Metrics