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The Housing Bubble: Tail and Dog

Posted on October 09, 2008

Richard Green tells us about: Richard's Real Estate and Urban Economics Blog: : Coleman, Lacour-Little and Vandell argue that house prices made sense until 2004. The abstract of their new paper: ...A model of house price dynamics over the period 1998-2006 is specified and estimated using a cross-sectional time-series data base across 20 metropolitan areas over the period 1998-2006. Results suggest that prior to early 2004, economic fundamentals provide the primary explanation for house price dynamics.... [W]e do find strong evidence that a credit regime shift took place in late 2003, as the GS...

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housing , housing bubble , real estate