"High and rising prices in Chinese housing markets have attracted global attention, as well as the interest of the … Chinese government and its regulators. Housing markets look very risky based on the stylized facts we document. Price …

"Between 1996 and 2006, real housing prices rose by 53 percent according to the Federal Housing Finance Agency price …-to-value levels and permissive mortgage approvals. We revisit the standard user cost model of housing prices and conclude that the … rates, mobility, prepayment, elastic housing supply, and credit-constrained home buyers. The modest predicted impact of …