dc.contributor |
Universitat Rovira i Virgili. Departament d'Economia |
dc.contributor |
Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública |
dc.contributor.author |
Díaz Serrano, Lluís |
dc.date.accessioned |
2015-03-17T17:13:32Z |
dc.date.available |
2015-03-17T17:13:32Z |
dc.date.created |
2015 |
dc.date.issued |
2015 |
dc.identifier.uri |
http://hdl.handle.net/2072/247804 |
dc.format.extent |
33 p. |
dc.language.iso |
eng |
dc.publisher |
Universitat Rovira i Virgili. Departament d'Economia |
dc.relation.ispartofseries |
Documents de treball del Departament d'Economia;2015-09 |
dc.rights |
info:eu-repo/semantics/openAccess |
dc.rights |
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
dc.source |
RECERCAT (Dipòsit de la Recerca de Catalunya) |
dc.subject.other |
Habitatges -- Oferta i demanda |
dc.subject.other |
Espanya |
dc.subject.other |
Mercat immobiliari |
dc.subject.other |
Crèdit |
dc.subject.other |
Habitatge -- Preus |
dc.subject.other |
Préstecs hipotecaris |
dc.title |
Banks, Lies and Bricks: The Determinants of Home Value Inflation in Spain during the Housing Boom |
dc.type |
info:eu-repo/semantics/workingPaper |
dc.subject.udc |
332 - Economia regional i territorial. Economia del sòl i de la vivenda |
dc.embargo.terms |
cap |
dc.description.abstract |
During the first decade of this century, Spain experienced the most important economic
and housing boom in its recent history. This situation led the lending industry to
dramatically expand through the mortgage market. The high competition among lenders
caused a dramatic lowering of credit standards. During this period, lenders operating in
the Spanish mortgage market artificially inflated appraised home values in order to draw
larger mortgages. By doing this, lenders gave financially constrained households access to
mortgage credit. In this paper, we analyze this phenomenon for this first time. To do so, we
resort to a unique dataset of matched mortgage-dwelling-borrower characteristics covering
the period 2004–2010. Our data allow us to construct an unbiased measure of property’s
over-appraisal, since transaction prices in our data also includes any potential side
payment in the transactions. Our findings indicate that i) in Spain, appraised home values
were inflated on average by around 30% with respect to transaction prices; ii) creditconstrained
households were more likely to be involved in mortgages with inflated house
values; and iii) a regional indicator of competition in the lending market suggests that
inflated appraisal values were also more likely to appear in more competitive regional
mortgage markets.
Keywords: Housing demand, appraisal values, house prices, housing bubble, credit
constraints, mortgage market.
JEL Classification: R21, R31 |