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Long-Run Information Diffusion Processes in the Perth Housing Market: 1988–2000

Author/s: Greg Costello

Date Published: 1/01/2003

Published in: Volume 9 - 2003 Issue 2 (pages 87 - 103)

Abstract

In the period since the influential studies by Case and Shiller (1989, 1990), it has been established that housing markets are characterised by information diffusion patterns determined by informational inefficiencies. In Australia, little work has been completed on the long-term patterns of these inefficiencies. This paper examines a rich data set of transactions for the Perth housing market in the period 1988-2000. The results confirm some significant long-term patterns for real house price changes and some close relationships between these patterns and changes in real interest rates.

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Keywords

Housing - Information Diffusion - Interest Rates - Repeat Sales

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