How rising and falling house prices spill over into other nearby regions.

Changes in house prices have a tendency to spill over from one region into another in a ripple effect. In new research Katharina Pijnenburg analyses whether these spill overs are uniform across space and time. Using data for 319 metropolitan statistical areas, she finds that house prices spill over more when house prices are increasing than when house prices are declining. She finds that this may be down to homeowners’ different behaviour when selling in times of falling house prices compared to times when they are increasing.