Price-volume Correlation in the Housing Market: Causality and Co-movements (P.11)

Fig. 1 Home price indices for
the U.S. MSAs. This figure plots
the deciles of OFEHO quarterly
home price indices (nominal)
in the U.S. from 1990:2 to
2002:2 where the deciles are
created using the total appreciation
of home prices in the
sample period. The index levels
are normalized to 1 in 1990:2

determination of house prices varies dramatically across time and markets with
different supply elasticity. To understand possible heterogeneity in the determination
of house prices and turnover and whether it affects the price–volume correlation, we
re-estimate the first specification for MSAs with above and below-median long term
supply elasticity. The measure we use for long term supply elasticity is the ratio of
Fig. 1 Home price indices for
the U.S. MSAs. This figure plots
the deciles of OFEHO quarterly
home price indices (nominal)
in the U.S. from 1990:2 to
2002:2 where the deciles are
created using the total appreciation
of home prices in the
sample period. The index levels
are normalized to 1 in 1990:2
Fig. 2 Quarterly turnover in the
U.S. MSA housing markets.
This figure reports the 25%
percentile, median, and the 75%
percentile of the quarterly turnover
in the 114 MSA housing
markets from 1990:2 to 2002:2.
Turnover is defined as the ratio
of existing home sales to the
stock of existing homes

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