The most frequent mortgage loans in the US behave according to nominal interest rates with level loan payments (NRMs), like Fixed Rate Mortgages (FRMs) or Adjustable Rate Mortgages (ARMs). We use a model to show that the tilt effect, an increase of real payments in the early years of the...

We use a model and show how inflation and mortgage loans based on nominal interest rates (NRMs), like FRMs, ARMs or IOs, are a source of instability for housing markets. NRMs allocate risk inappropriately and cause economic tensions due to the tilt effect (Lessard and Modigliani, 1975), the...

This chapter surveys the literature on the microstructure of housing markets. It considers one-sided search, random matching, and directed search models. It also examines the bargaining that takes place once a match has occurred, with the bargaining taking various forms, including two-party...

Ergänzend zu den Beiträgen im ifo Schnelldienst 16/2016 kommentiert Barbara Hendricks, Bundesministerin für Umwelt, Naturschutz, Bau und Reaktorsicherheit, die aktuelle Situation und stellt das »Bündnis für bezahlbares Wohnen und Bauen« vor.

This paper analyses the behaviour of prices and supply on the German housing market taking into account the interaction between prices and quantities. A novel price index for residential property prices covering the whole country going back to 1993 is used in a macroeconomic model to estimate...

In January-October 2012, entities of all the forms of ownership built 476,500 apartments with the total floorspace of 40.1m sq. meters which amounts to 103.8% on the respective period of 2011. The ratio between the price of housing and households' income in 2012 points to the fact that housing...

In January-October 2012, entities of all the forms of ownership built 476,500 apartments with the total floorspace of 40.1m sq. meters which amounts to 103.8% on the respective period of 2011. The ratio between the price of housing and households' income in 2012 points to the fact that housing...

In January-April 2014, 231,100 apartments with floorspace of 17.9m sq. meters which amounts to 127% on the respective period of 2013. In Q1 2014, the average actual cost of building of 1 sq. meter of residential housing rose by 12.52% as compared to Q1 2013 and amounted to Rb 39,290. The ratio...