... House price bubbles are detected using two approaches: ratios and regression analysis. Two variants of each method are considered. The authors calculate the price-to-rent and price-to-income ratios that can identify a possible overvaluation or undervaluation of house prices. Then, the authors perform...

...Daniel Hagemann; Monika Wohlmann Purpose The global financial and economic crisis resulting from the US housing crisis has shown that house prices can have far-reaching consequences for the real economy. For macroprudential supervision, it is, therefore, necessary to identify house price bubbles...