Category: Credit, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Can non-interest rate policies stabilise housing markets? Evidence from a panel of 57 economies”

  1. formerlawyer says:

    “Of the two policies targeted at the demand side of the market, the evidence indicates that reductions in the maximum LTV [Loan to Value] ratio do less to slow credit growth than lowering the maximum DSTI [Debt device to Income] ratio does. This may be because during housing booms, rising prices increase the amount that can be borrowed, partially or wholly offsetting any tightening of the LTV ratio.
    None of the policies designed to affect either the supply of or the demand for credit has a discernible impact on house prices. This has implications for the degree to which credit-constrained households are the marginal purchasers of housing or for the importance of housing supply, which is not explicitly considered in this study. Only tax changes affecting the cost of buying a house, which bear directly on the user cost, have any measurable effect on prices.”
    from page 26

    Given the political suicide that changing the mortgage deductibility represents, interest rates are the only effective mediator for housing stability?

  2. BuildingCom says:

    It’s all about the definitions.

    The media and economic fraudsters latest definition of “stabilize” means prices are falling to flat.

    Their definition of “recovery” is rising prices.

    You see…. It’s a word game played by insiders and those who profit from it.

    Now lets get down to price. Are housing prices too high, too low or aligned with reality?