Real estate markets and urban networks in Brazil

Bubbles in Real Estate Markets

Real estate markets and bank distress

We investigate the relationship between real estate markets and bank distress among German universal and specialized mortgage banks between 1995 and 2004. Higher house prices increase the value of collateral, which reduces the probability of bank distress (PDs). But higher prices at given rents may also indicate excessive expectations regarding the present value of real estate assets, which can...

Feedback Between Real Estate and Urban Economics

This paper considers the implications of increasing land supply constraints in the United States on urban demand. First, because shifts in demand are now capitalized more into the price of land, house prices in some metropolitan areas have grown increasingly unaffordable to typical households. This might have an effect on the fundamental character of such cities. Second, the effect of home owne...

Price Formation and the Appraisal Function in Real Estate Markets

A real estate market model characterized by incomplete information, costly search, and varying expectations is presented. The model describes a self-selection process for market participants and a distribution of transaction prices. These transaction prices, which arise from a Nash equilibrium, can be expressed as a noisy signal, reflecting incomplete information as well as the conditions of sa...

Regime Shifts in Asian Equity and Real Estate Markets

The recent Asian financial crisis has emphasized the volatility of modern financial markets. This crisis, and other recent financial shocks, suggest that returns may switch regimes: that is, randomly change from one distribution to another. This paper analyzes regime shifts in real estate and equity markets in ten Far Eastern countries, focusing on the period 1994 1998. We find little evidence ...