My topic is whether the rise in housing prices over time is another example of a bubble or

whether homes legitimately increase in value even as they age. There are many factors that affect
housing such as demand in the area, jobs, schools, scarcity or abundance, sudden changes in the
ethnic diversity of a neighborhood, even whether or not an area has become “chic” and thus is
now in more demand. With this in mind I’ve found an abundance of sources on housing prices
and some of the factors that might affect them either positively or negatively.
Stelk, Steven, and Leonard V. Zumpano. “Can Real Estate Brokers Affect Home Prices Under
Extreme Market Conditions?” International Real Estate Review, vol. 20, no. 1, Spring
2017, pp. 51–73.
http://sinclair.ohionet.org:80/login?url=https://search.ebscohost.com/login.aspx?direct=tr
ue&db=bth&AN=122477178&site=eds-live.
This is a study on housing prices and whether having a broker involved in the sale of the
property would increase or decrease its value. The study found that brokers generally led to an
increase in sale price of the home regardless of whether the home was being sold in a buyer’s or
seller’s market. It further stated that the use of brokers led to price segmentation in
neighborhoods where homes are all very similar thus leading to the conclusion that the price of
the home was not 100% dependent on the home itself. I can use this to show evidence that home
prices can be artificially inflated even beyond what the homeowner might be trying to get in
order to get profit for third parties involved in the process, thus driving up prices even more.

Angjellari-Dajci, Fiorentina, et al. “The Impact of Taxes and HOA Fees on Single-Family Home
Prices.” International Advances in Economic Research, vol. 21, no. 2, May 2015, pp.
201–211.
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ue&db=bth&AN=102202679&site=eds-live.
This study was conducted over a 10 year period on homes in a county of Northeast Florida. It
concluded that city and county property taxes could negatively impact the price of homes when
placed on the market (higher taxes make the home less attractive to potential buyers who might
not like to pay more than they would elsewhere) but that membership in a home owner’s
association (HOA) could actually raise the potential price on the property. Presumably the
HOA’s rules and regulations regarding the upkeep and appearance of all homes within the
association, along with any additional perks of membership such as community pools, tennis
courts, rec centers, etc., led to home prices being higher for members of the association. I could
use this as a source proving that the home itself might not be the only consideration in the pricing
and that other sources could artificially raise or lower the valuation thus showing that the homes
might not actually be the only consideration in pricing.

Zigan Wang, and Youwei Zhu. “Housing Bubble in the United States.” Journal of Accounting &
Finance (2158-3625), vol. 18, no. 3, July 2018, pp. 10–25.
 http://sinclair.ohionet.org:80/login?url=https://search.ebscohost.com/login.aspx?direct=tr
ue&db=bth&AN=131505091&site=eds-live.
This study goes in depth on the interactions between those looking to buy homes, those
providing the credit, mortgage companies buying and selling mortgages, and the highly complex
interactions taking place behind the scenes in the financial world that lead to credit availability
and interest rates. It also looks at housing demand, supply, mortgage rates, and home pricing. It
uses economic models to make predictions on future events and what might occur depending on
how the markets evolve. In other words, it is an extremely dull and dry document that is
overwhelming in its use of facts and figures. This is perfect for establishing credibility and
lending me an air of expertise in my paper. I can borrow a few quotes to support my thesis and
the very dullness of them will make them seem highly important. Perfect for persuading an
audience.
Clark, William A. V. “The Aftermath of the General Financial Crisis for the Ownership Society:
What Happened to Low-Income Homeowners in the US?” International Journal of
Housing Policy, vol. 13, no. 3, Sept. 2013, pp. 227–246.
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ue&db=a9h&AN=90258972&site=ehost-live.
This study looks at both the US and Europe as both markets pushed the easy availability of
homeownership onto citizens with low interest rates and the easy availability of financing. After
the housing bubble burst and many low income people lost their homes they haven’t been able to
recover as wages have remained stagnant even as housing prices have continued to rise. Interest
rates have risen and credit is no longer as easily attainable. The study points out that the
governments of the US and Europe continue to promote home ownership for all even as it
becomes less and less affordable for low income and minority citizens. I can use this study to
show that home prices are being affected by government policies that are pushing for everyone
to buy homes even if they can’t necessarily afford them, thus creating an incentive for a seller’s
market where prices rise regardless of demand increasing.
Olick, Diana. “The Housing Shortage May Be Turning, Warning of a Price Bubble.” CNBC,
CNBC, 12 July 2018, https://www.cnbc.com/2018/07/12/the-housing-shortage-may-be-
turning-warning-of-a-price-bubble.html.
This article from CNBC talks about how as home supply hasn’t increased at the same speed as
demand, prices have therefore gone up. However, this increase in demand is slowing as price
increases are outpacing the increase in demand thus leading to markets where home prices are
very high and sales are slowing to a crawl (a bubble). The prices are being kept high as buyers
bought when the market was heating up and it looked like they could still sell at a profit in the
near future if they wished. This has led to homes being placed on the market at prices higher than
buyers are now able to afford and the homes being left vacant. This is a perfect example of a
bubble and can be used in my paper to show that homes are not a guaranteed investment and that
they can in fact lose value over time.