Prices of existing houses peaked in southern California during the second quarter of 1990 andpreceded a lengthy recession. This paper examines the response of homebuilders in a masterplanned community in the suburban Los Angeles region to the end of the boom and the onsetand deepening of the...

"The variation in default rates by region is quite substantial. Default rates in theNorthcentral states were about ve times as large as default rates in the Southeasternstates. These dierences reflect the credit rate risk associated with the real estatemarkets in each of the regions, the...

Real house prices are directly determined by the willingness of households to pay for (and willingness of builders to supply) a constant-quality house. Changes in the quantity of housing demanded will affect real prices only to the extent that the long-run housing supply schedule is positively...