Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298507 
Year of Publication: 
2023
Series/Report no.: 
Staff Memo No. 10/2023
Publisher: 
Norges Bank, Oslo
Abstract: 
This paper provides descriptive evidence for a housing Phillips curve in Norway, suggesting a negative relationship between the ratio of inventory-to-sales and subsequent house price growth in the market for existing homes. We show that the negative relationship between inventory-to-sales and house price growth in Norway only holds at short horizons, consistent with short-term momentum in the Norwegian housing market. This is in contrast to the U.S. housing market, where the Phillips curve relationship and momentum effects persist over longer horizons. We also examine heterogeneity in the housing Phillips curve and momentum across Norwegian local housing markets and find that the housing Phillips curve is stronger in larger cities. Overall, our findings imply that the Norwegian housing market is less frictional than the U.S. housing market, with homes selling faster on average and house prices responding faster to shocks.
Subjects: 
House prices
dynamic housing Phillips curve
house price momentum
local projections
months-of-supply
financial stability
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-274-4
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
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