Munich Personal RePEc Archive

Bubbles and contagion in English house prices

Fry, J. M. (2009): Bubbles and contagion in English house prices.

[img]
Preview
PDF
MPRA_paper_17687.pdf

Download (154kB) | Preview

Abstract

Using methods originating from statistical physics we model bubbles in English house prices. It is found that there was a nationwide housing bubble 2002-2007. Typically prices were 30-40% over-valued and fell around 20%. London is atypical in that the level of over-pricing was lower, only around 20%, and experienced a drop in prices of only around 15%. There is some suggestion of contagious effects, with the bubble in London affecting prices in Yorkshire and the North.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.