IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-03459593.html
   My bibliography  Save this paper

La fin de l’American Dream

Author

Listed:
  • Christine Rifflart

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

After an exceptionally long period of growth on the housing market, the activity has turned over from the beginning of 2006. It seems deeply engaged in a severe adjustment but we suppose this will not lead the economy in a global recession. After a presentation of the past trends (activity, house prices, wealth, mortgage debt), we try to profile these new homeowners and understand the circumstances which allowed households to become owners. The increase of debt could not have taken place if some specific conditions had not been satisfied (low interest rates, high liquidity because of the expansion of the secondary market, creativity of banks to get back the limits of indebtedness). With the increase of interest rates and the slowdown of prices, mortgage equity withdrawal become less attractive and the weakest households could be trapped in their financial commitment, coming back to the hard reality.

Suggested Citation

  • Christine Rifflart, 2007. "La fin de l’American Dream," SciencePo Working papers Main hal-03459593, HAL.
    • Handle: RePEc:hal:spmain:hal-03459593
    DOI: 10.3917/reof.101.0193
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03459593
    as

    Download full text from publisher

    File URL: https://hal-sciencespo.archives-ouvertes.fr/hal-03459593/document
    Download Restriction: no
    File URL: https://libkey.io/10.3917/reof.101.0193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Howard Lax & Michael Manti & Paul Raca & Peter Zorn, 2004. "Subprime lending: An investigation of economic efficiency," Housing Policy Debate, Taylor & Francis Journals, vol. 15(3), pages 533-571.
    2. Jonathan McCarthy & Richard Peach, 2004. "Are home prices the next \\"bubble\\"?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-17.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christine Rifflart, 2007. "La fin de l’American Dream," Post-Print hal-03459593, HAL.
    2. repec:hal:spmain:info:hdl:2441/2492 is not listed on IDEAS
    3. repec:spo:wpmain:info:hdl:2441/2492 is not listed on IDEAS
    4. Sau Kim Lum & Tilin Koh & Seow‐Eng Ong, 2004. "Upgrading programme in public housing: an assessment of price and liquidity enhancements," Journal of Property Research, Taylor & Francis Journals, vol. 21(2), pages 143-159, November.
    5. Edward L. Glaeser & Joseph Gyourko, 2006. "Housing Dynamics," NBER Working Papers 12787, National Bureau of Economic Research, Inc.
    6. Giorgio Canarella & Stephen M. Miller & Stephen K. Pollard, 2010. "Unit Roots and Structural Change: An Application to US House-Price Indices," Working papers 2010-04, University of Connecticut, Department of Economics, revised Dec 2010.
    7. Holly, Sean & Pesaran, M. Hashem & Yamagata, Takashi, 2010. "A spatio-temporal model of house prices in the USA," Journal of Econometrics, Elsevier, vol. 158(1), pages 160-173, September.
    8. Visar Hoxha & Alenka Temeljotov Salaj, 2014. "Fundamental Economic Factors That Affect Housing Prices: Comparative Analysis between Kosovo and Slovenia," Management, University of Primorska, Faculty of Management Koper, vol. 9(4), pages 323-348.
    9. Benati, Luca, 2021. "Leaning against house prices: A structural VAR investigation," Journal of Monetary Economics, Elsevier, vol. 118(C), pages 399-412.
    10. Lunde, Jens, 2006. "The owner-occupiers’ capital structure during a house price boom," Working Papers 2005-3, Copenhagen Business School, Department of Finance.
    11. Perry Singleton, 2015. "Health, Medical Innovation, and Disability Insurance: A Care Study of HIV Antiretroviral Therapy," Center for Policy Research Working Papers 182, Center for Policy Research, Maxwell School, Syracuse University.
    12. Andrew Leventis, 2006. "Removing Appraisal Bias from a Repeat-Transactions House Price Index – A Basic Approach," FHFA Staff Working Papers 06-01, Federal Housing Finance Agency.
    13. Ansgar Belke & Marcel Wiedmann, 2005. "Boom or Bubble in the US Real Estate Market?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 260/2005, Department of Economics, University of Hohenheim, Germany.
    14. Paolo Gelain & Kevin J. Lansing & Caterina Mendicino, 2013. "House Prices, Credit Growth, and Excess Volatility: Implications for Monetary and Macroprudential Policy," International Journal of Central Banking, International Journal of Central Banking, vol. 9(2), pages 219-276, June.
    15. Gelain, Paolo & Lansing, Kevin J., 2014. "House prices, expectations, and time-varying fundamentals," Journal of Empirical Finance, Elsevier, vol. 29(C), pages 3-25.
    16. Larraz-Iribas, Beatriz & Alfaro-Navarro, Jose-Luis & Rodriguez-Aragon, Francisco, 2008. "Asymmetric Behaviour of Spanish Regional House Prices: A Multivariate Approach," The Journal of Economic Asymmetries, Elsevier, vol. 5(2), pages 81-104.
    17. Konstantin Kholodilin, 2015. "Speculative Bubbles in Urban Housing Markets in Germany," ERSA conference papers ersa15p67, European Regional Science Association.
    18. Garner, Thesia I. & Verbrugge, Randal, 2009. "Reconciling user costs and rental equivalence: Evidence from the US consumer expenditure survey," Journal of Housing Economics, Elsevier, vol. 18(3), pages 172-192, September.
    19. Davis, Morris A. & Heathcote, Jonathan, 2007. "The price and quantity of residential land in the United States," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2595-2620, November.
    20. Hott, Christian, 2015. "A model of mortgage losses and its applications for macroprudential instruments," Journal of Financial Stability, Elsevier, vol. 16(C), pages 183-194.
    21. Elias Oikarinen & Steven C. Bourassa & Martin Hoesli & Janne Engblom, 2017. "Revisiting the House Price-Income Relationship," LARES lares_2017_paper_26, Latin American Real Estate Society (LARES).
    22. repec:wyi:journl:002167 is not listed on IDEAS
    23. Khandani, Amir E. & Lo, Andrew W. & Merton, Robert C., 2013. "Systemic risk and the refinancing ratchet effect," Journal of Financial Economics, Elsevier, vol. 108(1), pages 29-45.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:spmain:hal-03459593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.