Monday, October 4, 2021
From a NBER working paper by Amir Kermani & Francis Wong:
“We document the existence of a racial gap in realized housing returns that is an order of magnitude larger than disparities arising from housing costs alone, and is driven almost entirely by differences in distressed home sales (i.e. foreclosures and short sales). Black and Hispanic homeowners are both more likely to experience a distressed sale and to live in neighborhoods where distressed sales erase more house value. Importantly, absent financial distress, houses owned by minorities do not appreciate at slower rates than houses owned by non-minorities. Racial differences in income stability and liquid wealth explain a large share of the differences in distress. We use quasi experimental variation in loan modifications to show that policies that restructure mortgages for distressed minorities can increase housing returns and reduce the racial wealth gap.”
From a NBER working paper by Amir Kermani & Francis Wong:
“We document the existence of a racial gap in realized housing returns that is an order of magnitude larger than disparities arising from housing costs alone, and is driven almost entirely by differences in distressed home sales (i.e. foreclosures and short sales). Black and Hispanic homeowners are both more likely to experience a distressed sale and to live in neighborhoods where distressed sales erase more house value.
Posted by 7:16 AM
atLabels: Global Housing Watch
Friday, October 1, 2021
On cross-country:
On the US:
On China:
On other countries:
On cross-country:
Posted by 4:59 AM
atLabels: Global Housing Watch
Friday, September 24, 2021
On cross-country:
On the US:
On China
On other countries:
On cross-country:
On the US:
Posted by 5:00 AM
atLabels: Global Housing Watch
Wednesday, September 22, 2021
From a VoxEU post by Ken Rogoff:
“The Chinese economy was able to sharply rebound from the Covid pandemic, helping to sustain a housing boom. The country faces a multitude of challenges over the medium term, however, on top of the much more virulent Delta variant. This column argues that the footprint of China’s real estate sector has become so large – with real estate production and property services accounting for 29% of the country’s GDP – that absorbing a significant housing slowdown would significantly impact overall growth, even absent a financial crisis.”
From a VoxEU post by Ken Rogoff:
“The Chinese economy was able to sharply rebound from the Covid pandemic, helping to sustain a housing boom. The country faces a multitude of challenges over the medium term, however, on top of the much more virulent Delta variant. This column argues that the footprint of China’s real estate sector has become so large – with real estate production and property services accounting for 29% of the country’s GDP – that absorbing a significant housing slowdown would significantly impact overall growth,
Posted by 5:42 AM
atLabels: Global Housing Watch
Thursday, September 16, 2021
From the IMF’s latest report on Belgium:
“Increased vulnerabilities from real estate call for supervisory vigilance and possible use of macroprudential policies to mitigate stability risks. Despite the crisis, prices of residential and some commercial RE segments (e.g., logistics) have risen, also supported by low interest rates. In addition, house prices benefitted from the channeling of some of the excess savings accumulated during the pandemic (€25 billion, 5½ percent of GDP, in 2020) into residential properties. In a market correction the quality of RE assets, which account for a sizable share of financial-sector portfolios, may deteriorate. The NBB has appropriately maintained a risk-weight add-on for housing loans in place since December 2013 and affirmed December 2019 supervisory expectations that set limits on riskier mortgage lending. Market developments should be closely monitored for price misalignments. If imbalances mount, macroprudential tightening should be considered to constrain lending to highly-leveraged borrowers and strengthen buffers, also encompassing the commercial segment.”
From the IMF’s latest report on Belgium:
“Increased vulnerabilities from real estate call for supervisory vigilance and possible use of macroprudential policies to mitigate stability risks. Despite the crisis, prices of residential and some commercial RE segments (e.g., logistics) have risen, also supported by low interest rates. In addition, house prices benefitted from the channeling of some of the excess savings accumulated during the pandemic (€25 billion, 5½ percent of GDP,
Posted by 11:42 AM
atLabels: Global Housing Watch
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