Martin Hrachovec

Residential Real Estate Market During the Financial Crisis: Empirical Evidence from the Cee Region Martin Hrachovec

This book investigates the housing price determinants and possibilities of housing price bubbles in the residential real estate markets of Central and Eastern Europe before and during the economic crisis of 2007-2009. Using data from international institutions, national central banks and national statistical offices three quantitative methods are applied (price-to-income ratios, panel data models and vector autoregression. Main factors influencing the housing prices are determined and various periods of housing price bubbles are identified. Under the VAR method Each country is modeled separately and there is evidence of substantial differences between the countries. Poland is the only country that does not exhibit housing price persistence and dynamics in Austria are less volatile as compared to the new EU members in the sample. The work benefits from insights of staff from IES under Charles university in Prague and has been reviewed by members of the Czech National Bank, doc. Ing. Lubo? Komárek, Ph. D., MSc., MBA and Michal Franta, Ph. D.