This paper develops a dynamic equilibrium model to study the house price dynamics in the United States. I find that changes in down payment requirements can quantitatively account for the observed house price dynamics over the last three decades. The high and stable down payment requirements...

The Chinese real estate market has been experiencing rapid growth and transformation over the last few years. Real estate has been gradually accepted as one of the important asset classes in the portfolios of individual and institutional investors. It is therefore timely and pertinent to...