Sinai, Todd; Souleles, Nicholas S - National Bureau of Economic Research (NBER) - 2009
price, especially if one moves to another housing market. However, households who sell a house typically buy another house …, whose purchase price is also uncertain. We show that for such households, home owning often hedges their net exposure to … house prices covary and households tend to move between the highly correlated housing markets. Taking these two …