United States: Selected Issues

July 30, 2008

Preview Citation

Format: Chicago

United States: Selected Issues, (USA: International Monetary Fund, 2008) accessed November 22, 2024

Summary

This Selected Issues paper summarizes estimates of the gap between current housing prices and their equilibrium levels in the United States. It examines short-term dynamics of price adjustment. Reflecting uncertainties about how to analyze underlying housing price trends, two approaches are used in the paper to estimate the extent of housing-price overvaluation. Both techniques yield similar results, revealing considerable overvaluation in the last few years, which has not been fully corrected yet. The gap between actual and equilibrium housing prices seems to matter only through its medium-term impact on the inventory-to-sales ratio.

Subject: Bank credit, Banking, Credit, Financial statements, Housing, Housing prices, Money, National accounts, Prices, Public financial management (PFM)

Keywords: Bank credit, CR, Credit, Equity price, Financial statements, Home-price dynamics, House-price bust, Housing, Housing crisis, Housing price, Housing prices, Housing-price bust, Housing-price effects, ISCR, OFHEO housing-price index, Price movement, Quarter-on-quarter home-price appreciation

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2008/256
Stock No:

1USAEA2008002
ISBN:

9781451839722
ISSN:

1934-7685

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