House Price Synchronicity, Banking Integration, and Global Financial Conditions

Adrian Alter, Jane Dokko and Dulani Seneviratne

No 2018/250, IMF Working Papers from International Monetary Fund

Abstract: We examine the relationship between house price synchronicity and global financial conditions across 40 countries and about 70 cities over the past three decades. The role played by cross-border banking flows in residential property markets is examined as well. Looser global financial conditions are associated with greater house price synchronicity, even after controlling for bilateral financial integration. Moreover, we find that synchronicity across major cities may differ from that of their respective countries’, perhaps due to the influence of global investors on local house price dynamics. Policy choices such as macroprudential tools and exchange rate flexibility appear to be relevant for mitigating the sensitivity of domestic housing markets to the rest of the world.

Keywords: WP; house price synchronicity; gap synchronicity; synchronicity measure; house price growth; equity price return; price gap synchronicity; Housing market; global liquidity; financial conditions; banking intergration; business cycles; gaps of country; cycle synchronicity; house price synchronicity measure; Housing prices; Exchange rate arrangements; International liquidity; Global financial crisis of 2008-2009; Global (search for similar items in EconPapers)
Pages: 42
Date: 2018-11-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=46380 (application/pdf)

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:imf:imfwpa:2018/250

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().