Where are the speculative bubbles in US housing markets?

Expectation Adjustment in the Housing Market: Insights from the Scottish Auction System

“…In market boom conditions and locations where demand is high relative to supply, the seller will be in a stronger bargaining position relative to the buyer. Glaeser et al (2008) and Goodman and Thibodeau (2008) indicate that housing market bubbles are exacerbated where housing supply is price inelastic.…”

House prices, housing development costs, and the supply of new single-family housing in German counties and cities

“…One of the key parameters of investigation is housing supply elasticity, the sensitivity to which new housing investment responds to (changes in) existing house prices. While older studies mainly use national-level data over long time periods to draw quantitative conclusions about the price elasticity of housing supply, younger publications focus overwhelmingly on regional or local housing market data; recent contributions include Green et al (2005), Meen (2005, Hwang and Quigley (2006), Goodman and Thibodeau (2008), , Ball et al (2010) and Saiz (2010). The advantage of using local rather than national data in studying housing supply arises from the fact that housing markets are essentially spatially separated, following from the fact that houses are immobile and hence both produced and consumed locally.…”

“…2 There turns out to be a considerable range of elasticity estimates, sometimes even varying for the same spatial entities depending on the data used. 3 For instance, Goodman and Thibodeau (2008) find an average elasticity of 0.62 for 95 US metropolitan areas with positive elasticity values analyzing data for two time periods, 1990 and 2000. Using comparable data, Saiz (2010) reports a population-weighted average of 1.75 in 2000.…”

House prices, housing development costs, and the supply of new single-family housing in German counties and cities

“…One of the key parameters of investigation is housing supply elasticity, the sensitivity to which new housing investment responds to (changes in) existing house prices. While older studies mainly use national-level data over long time periods to draw quantitative conclusions about the price elasticity of housing supply, younger publications focus overwhelmingly on regional or local housing market data; recent contributions include Green et al (2005), Meen (2005, Hwang and Quigley (2006), Goodman and Thibodeau (2008), , Ball et al (2010) and Saiz (2010). The advantage of using local rather than national data in studying housing supply arises from the fact that housing markets are essentially spatially separated, following from the fact that houses are immobile and hence both produced and consumed locally.…”

“…2 There turns out to be a considerable range of elasticity estimates, sometimes even varying for the same spatial entities depending on the data used. 3 For instance, Goodman and Thibodeau (2008) find an average elasticity of 0.62 for 95 US metropolitan areas with positive elasticity values analyzing data for two time periods, 1990 and 2000. Using comparable data, Saiz (2010) reports a population-weighted average of 1.75 in 2000.…”