Macroeconomic causes of variance in house and property prices

Larry Allen

International Journal of Business Innovation and Research, 2017, vol. 12, issue 3, 377-385

Abstract: This paper is a frankly empirical piece with the purpose of explaining the variance of housing prices as a function of macroeconomic fundamentals. The analysis is based upon data from six advanced countries, Australia, France, Germany, Japan, the UK, and the USA. The sample range stretches from 2001 thru 2012. A panel regression procedure is applied to the dataset. The findings suggest that housing price variance can be interpreted as a function of important macroeconomic variable. These macroeconomic variables include monetary growth, first differences in the current account as a percent of GDP, first differences in the imbalance between investment and savings, and the public debt as a percent of GDP. The rate of growth of housing prices also plays a role in individual countries.

Keywords: housing markets; house price growth; property prices; house prices; price variance; macroeconomic fundamentals; macroeconomic imbalances; current account; public debt; sub-prime crisis; GDP gap; gross domestic product; Australia France Germany Japan UK; United Kingdom; USA; United States; investment; savings. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=82092 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:12:y:2017:i:3:p:377-385

Access Statistics for this article

More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().