The important, albeit complex,
relationships that exist between property prices and the level of nominal aggregate
demand in an economy makes monitoring property prices an important barometer
for monetary authorities. Not only is real estate spending an important part of
investment, but the value of property holdings influences consumer spending
through real wealth effects. Indeed a recent useful contribution by Drehmann et
al (2012) has suggested that combining property prices with credit information provides
the best means of explaining financial cycles and p...