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House Prices and Regional Real Estate Cycles: Market Adjustments in Houston
Author(s) -
Smith Barton A.,
Tesarek William P.
Publication year - 1991
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00559
Subject(s) - real estate , economics , bust , house price , statistic , monetary economics , market price , price level , capitalization rate , econometrics , financial economics , macroeconomics , boom , real estate investment trust , microeconomics , finance , statistics , mathematics , environmental engineering , engineering
Real estate cycles often generate sharp swings in real housing prices, price changes that cannot be adequately described by a single statistic such as median home values. Instead, the entire structure of prices across all quality levels must be examined. This paper analyzes the price impact of the Houston, Texas, real estate bust. It shows that the average price of housing fell, and that the structure of the housing price function itself changed. Changes in the marginal price of housing were probably more significant to the market equilibrating process than the decline in average price alone.