Determinants of House Prices in Central and Eastern Europe

Balázs Égert and Dubravko Mihaljek

No wp894, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan Stephen M. Ross Business School

Abstract: This paper studies the determinants of house prices in eight transition economies of central and eastern Europe (CEE) and 19 OECD countries. The main question addressed is whether the conventional fundamental determinants of house prices, such as GDP per capita, real interest rates, housing credit and demographic factors, have driven observed house prices in CEE. We show that house prices in CEE are determined to a large extent by the underlying conventional fundamentals and some transition-specific factors, in particular institutional development of housing markets and housing finance and quality effects.

Keywords: house prices; housing market; transition economies; central and eastern Europe; OECD countries (search for similar items in EconPapers)
JEL-codes: E20 E39 P25 R21 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-mac, nep-tra and nep-ure
Date: 2007-10-01
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http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp894.pdf

Related works:
Working Paper: Determinants of house prices in central and eastern Europe (2007)
Working Paper: Determinants of House Prices in Central and Eastern Europe (2007)
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