Did The Housing Market Fundamentally Change?

Vice President and Economist Carlos Garriga, guest scientist Aaron Hedlund, and research assistant Matthew Famiglietti, researched the US housing markets with changes in housing prices and average market prices (or housing liquidity as the authors say).

The authors compared housing conditions in 2002-06 and 2013-17. The heat maps in the experiment show changes in house prices and changes in market durations between the two periods.

House Prices

The authors said that the housing boom in 2002-2006 seems to be focused on the east and west coasts. Housing prices rose sharply in metropolitan Florida, in the northeast, northwest and southwest of the Pacific Ocean, Gar (says Garriga, Hedlund and Famiglietti).

At the same time, a more modest increase or even decrease was observed in the Midwest and other central regions. 

Housing Liquidity

The authors found that during the 2002-2006 boom, housing liquidity in the markets across the country changed significantly. In some megacities, the increase in liquidity was in others - one drop and in others - mixed zones in the same subway area.

"However, in the post-crisis period of 2013-2017, housing liquidity improved almost everywhere," said Garriga, Hedlund and Famiglietti, adding that there were some important exceptions in Arizona and California.