Residential real estate price indices as financial soundness indicators: methodological issues - BIS Papers No 21, part 15, April 2005
نویسندگان
چکیده
The purpose of this conference on real estate indicators and financial stability is “to promote the development of reliable, timely and consistent statistics on real estate prices” in order to support policy initiatives to promote macroeconomic stability. The recent volatility of asset prices and the Asian financial crisis of 1997 have focused attention on the role of asset markets and, in particular, real estate markets in the generation of financial crises and economic instability across nations. With contagion effects driven by fast and large flows of capital, such national crises threaten global financial stability. Hence the need for monitoring devices and policy instruments to respond to the heightened potential for asset market induced global financial instability.
منابع مشابه
A comparison of UK residential house price indices - BIS Papers No 21, part 16, April 2005
The measurement of house prices poses significant conceptual and practical problems, mainly because dwellings are heterogeneous assets whose prices can only be observed when they are sold. There are now seven main house price indices for the United Kingdom. In broad terms, each measures one of three different concepts: the value of a representative set of house transactions; the price of a hous...
متن کاملThe importance of property markets for monetary policy and financial stability - BIS Papers No 21, part 3, April 2005
The real estate sector has been a major source of strength for the global economy since the most recent economic downturn. This has been particularly true of the residential property sector: in most countries house prices have been quite strong over the past few years. Rising house prices, together with low interest rates, have boosted mortgage refinancing activities, encouraged consumer spendi...
متن کاملMortgage Default Risk and Real Estate Prices: The Use of Index-Based Futures and Options in Real Estate
Evidence is shown, using US foreclosure data by state 1975–93, that periods of high default rates on home mortgages strongly tend to follow real estate price declines or interruptions in real estate price increase. The relation between price decline and foreclosure rates is modelled using a distributed lag. Using this model, holders of residential mortgage portfolios could hedge some of the ris...
متن کاملHousing stock in Brazil: estimation based on a hedonic price model - BIS Papers No 21, part 21, April 2005
As an important aspect for the level of wealth, social welfare and economic growth, the housing stock, and more specifically, home ownership are significant structural mechanisms in the reduction of poverty and social inequalities. Nevertheless, the difficulties in measuring the prices of real capital such as housing are very well known. These difficulties stem, in part, from the heterogeneity ...
متن کاملOn the Price Comovement of U.S. Residential Real Estate Markets
We investigate the comovement among Case-Shiller Home Price Indices for 14 metropolitan areas between 1992 and 2008. We define the portion of this comovement deemed as fundamental (excessive) as the covariation that can (cannot) be attributed to common fundamental factors directly influencing real estate prices. We find that i) comovement among these markets considerably increased over the samp...
متن کامل