Housing demand stimulus produces a multiplier effect by freeing up owners attempting to sell their current home, allowing them to re-enter the market as buyers and triggering a chain of further transactions. Exploiting a shock to first-time home buyer demand caused by the 2015 surprise cut in...

We use a housing search model and data on individual home listings to decompose fluctuations in home sales and price growth into supply or demand factors. Simulations of the estimated model show that housing demand drives short-run fluctuations in home sales and prices, while variation in supply...