paper

Is There a Real-Estate Bubble in the US?

arXiv:physics/0506027 · doi:10.1016/j.physa.2005.06.098

Abstract

We analyze the quarterly average sale prices of new houses sold in the USA as a whole, in the northeast, midwest, south, and west of the USA, in each of the 50 states and the District of Columbia of the USA, to determine whether they have grown faster-than-exponential which we take as the diagnostic of a bubble. We find that 22 states (mostly Northeast and West) exhibit clear-cut signatures of a fast growing bubble. From the analysis of the S&P 500 Home Index, we conclude that the turning point of the bubble will probably occur around mid-2006.

7 Elsaet Latex pages + 9 eps figures

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