Norges Bank

Working Paper

Downward nominal house price rigidity: Evidence from three centuries of data on housing transactions

Author:
Solveig K. Erlandsen and Ragnar Enger Juelsrud
Series:
Working Paper
Number:
1/2023

Abstract

By analyzing housing data from the period 1850 to 2019 in Norway, we find evidence of downward nominal house price rigidity. More specifically, we document that there is a marked fraction of repeat-sales housing transactions with a zero nominal price change and show that this fraction increases in housing market downturns. While the former result reveals a rigidity in nominal house prices, the latter suggests that the direction of it is predominantly downward.

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ISSN 1502-8190 (online)

Published 5 January 2023 13:45
Published 5 January 2023 13:45