Abstract:
In the period since the influential studies by Case and Shiller (1989, 1990), it has
been established that housing markets are characterised by information diffusion
patterns determined by informational inefficiencies. in Australia, little work has
been completed on the long-term patterns of these inefficiencies. This paper
examines a rich data set of transactions for the Perth housing market in the period
1988-2000. The results confirm some significant long-term patterns for real house
price changes and some close relationships between these patterns and changes in
real interest rates.
