Housing Equity Withdrawal
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چکیده
The increase in housing prices in recent years has contributed to rising household wealth and has helped to underpin continued strength in consumption spending. One important aspect of this process is that rising housing prices, combined with other factors such as lower interest rates and financial innovation, have increased the capacity of households to borrow. A feature of the past few years has been that the increase in borrowing secured against housing has exceeded net new spending on housing assets. This means that households, in aggregate, have been extracting some of their equity in the housing stock to release funds for other purposes. This process of housing equity withdrawal has also been observed in the US and the UK over the past few years, and has been cited as a factor contributing to the growth of consumer spending in those countries.
منابع مشابه
Survey on Housing Equity Withdrawal and Injection
Over the past few years, household borrowing against the stock of housing has increased by more than household spending on new housing and renovations. As a result, the household sector has effectively extracted equity from the housing stock, though the net amount withdrawn has recently been declining. The signifi cant equity withdrawal over 2001 to 2004 stands in contrast to experience in prev...
متن کاملBankwest Curtin Economics Centre
In an era of population ageing, the primary home is increasingly viewed as a personal resource that can perform a pension role in retirement. This paper assesses the extent to which Australians aged over 45 utilise housing equity withdrawal (HEW) through the three methods of in situ mortgage equity withdrawal, downsizing and selling up. We find that the incidence of HEW has increased over the l...
متن کاملDoes Mortgage Equity Withdrawal (mew) Exert Positive Pressure on House Prices in the United Kingdom?
During the Noughties in the UK, we have seen a massive explosion in unsecured personal debt mirrored to a lesser extent by an exponential rise in secured debt. Much of the secured debt is attributed to an increase in Mortgage Equity Withdrawal (MEW), that is, borrowing secured on the housing stock but not invested in it. In this paper, the question posed is: Does MEW exert positive pressure on ...
متن کاملHomeownership, Social Insurance, and Old-Age Security in the United States and Europe
Relatively few Americans have accumulated substantial savings outside of their employer-sponsored retirement plans, yet most own their homes. The traditional view of the retirement income system as a three-legged stool supported by Social Security, private pensions, and savings may be better viewed as being supported by Social Security, pensions, and homeownership. Country-specific economic, so...
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