In this paper, we examine changes in the time series properties of three widely used housing market indicators (real house prices, price-to-income ratios, and price-to-rent ratios) for a large set of countries to detect episodes of explosive dynamics. Dating such episodes of exuberance in...

We show that profit-seeking institutional investors can provide valuable liquidity and spur the recovery of distressed housing markets. Using a quasi-natural experiment wherein investors purchased pre-packaged distressed home portfolios from the government-sponsored enterprises, we find that...

This paper evaluates the performance of the housing market in China after the COVID-19 outbreak and the subsequent economy reopening. We construct weekly housing price indices for 64 cities by analyzing more than 700 thousand housing transaction records in 2019 and 2020. After accounting for the...

The average time on market (TOM) of sold properties is frequently used by practitioners and policymakers as a market liquidity indicator. This figure might be misleading as the average TOM only considers properties that have been sold. Furthermore, traded properties are heterogeneous. Since...

This paper presents novel evidence of the effects of bidders' behavioral biases, and sellers' strategic responses, on the outcome of high-stakes auctions. We take advantage of the introduction of real estate “underquoting” laws as a natural experiment. The laws deter the practice of...

We study the economic effects of place-based policies in the housing market, by investigating the effects of a place-based programme on prices of surrounding owner-occupied properties. The programme improved the quality of public housing in 83 impoverished neighbourhoods throughout the...

Borrowers in states with non-recourse mortgage law face limited liability on their mortgage loans. We show that non-recourse law causes larger swings in housing prices by encouraging speculative investments when housing markets are in a boom cycle. We find that mortgage lending pricing does not...

Asset prices in general, and real house prices in particular, are often characterized by a nonlinear data-generating process which displays mildly explosive behavior in some periods. Here, we investigate the emergence of explosiveness in the dynamics of real house prices and the role played by...

The number 8, pronounced like 'prosperity,' is lucky in Chinese culture; 4, pronounced like 'death' is unlucky. Superstitious beliefs may influence asset prices if transaction participants have cultural preferences for specific numbers. We analyze the relationship between the presence of 8s and...

Capitalization (CAP) rates for residential real estate are generally assumed to vary with interest rates, expected appreciation, and a variety of other factors but not with the size or value of the unit. It is generally assumed that landlords can adjust unit size to increase supply in a size...