House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data
Open accessAbstract
Existing literature documents that house prices respond to monetary policy surprises with a significant delay, taking years to reach their peak response. We present new evidence of a much faster response. We exploit information contained in listings for the residential properties for sale in the United States between 2001 and 2019 from the CoreLogic Multiple Listing Service Dataset. Using high-frequency measures of monetary policy shocks, we document that a one-standard-deviation contractionary monetary policy surprise lowers housing list prices by 0.20.3 percent within two weeksa magnitude on par with the effect on stock prices. House prices respond stronger to the surprises to future rates as compared to the surprise changes in the federal funds rate. Sale prices are mostly pre-determined by list prices and do not independently respond to monetary policy surprises.
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- Authors
- Gorea, D., Kryvtsov, O., & Kudlyak, M.
- Affiliations
- European Investment Bank (LU)
- Government of Canada (CA)
- Hoover Institution (US)
- Corresponding author
- Gorea, Denis
- Venue
- SSRN Electronic Journal
- Publisher
- Elsevier BV
- Published
- 2022
- ISSN
- 1556-5068 (ISSN-L)
- OpenAlex
- W4291208887
- Cited by
- 15
- References
- 52
- Citations by year
- 2026: 1 · 2025: 3 · 2024: 3 · 2023: 6 · 2022: 1 · 2015: 1
- Type
- posted content
- Language
- en
- Open access
- green
- doi.org
- Locations
- SSRN Electronic Journal (acceptedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Econstor (Econstor) (submittedVersion)
- Bank of Canada Research
- Funders
- European Investment Bank
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Housing Market and Economics
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Keywords
- housing prices, monetary policy surprises, selling price, monetary policy shocks, federal funds rate, interest rates, housing market
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