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House prices and expectations

Author

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  • Caterina Mendicino

Abstract

Households’ optimism about future house price appreciation is frequently suggested as a driver of house price increases. This article analyses the role that news and changes in expectations play in house price dynamics, as well as their implications for macro-prudential policy. JEL Classification: D84, E32, E44, G12

Suggested Citation

  • Caterina Mendicino, 2014. "House prices and expectations," Research Bulletin, European Central Bank, vol. 21, pages 12-15.
    • Handle: RePEc:ecb:ecbrbu:2014:0021:3
    as

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    File URL: http://www.ecb.europa.eu/pub/pdf/other/researchbulletin21en.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    asset pricing; excess volatility; credit booms; housing bubbles; monetary policy; macroprudential policy;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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