TY - BOOK ID - 64732992 TI - Assessing House Prices with Prudential and Valuation Measures AU - Andrle, Michal. AU - PlaĊĦil, Miroslav. PY - 2019 SN - 1498304443 1498302815 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Real property KW - Land valuation KW - Real estate appraisal KW - Valuation of land KW - Valuation. KW - Infrastructure KW - Macroeconomics KW - Real Estate KW - Industries: Financial Services KW - Financial Risk Management KW - Prices, Business Fluctuations, and Cycles: Forecasting and Simulation KW - Housing Supply and Markets KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Personal Income, Wealth, and Their Distributions KW - Economic Development: Urban, Rural, Regional, and Transportation Analysis KW - Housing KW - International Financial Markets KW - Property & real estate KW - Finance KW - Housing prices KW - Personal income KW - Loans KW - Prices KW - Financial institutions KW - National accounts KW - Asset valuation KW - Asset and liability management KW - Income KW - Saving and investment KW - Asset-liability management KW - Czech Republic UR - https://www.unicat.be/uniCat?func=search&query=sysid:64732992 AB - In this paper we provide tools for assessing the house prices and housing valuation. We develop two approaches: (i) borrowing capacity approach, and (ii) intrinsic value approach. The borrowing capacity of households, together with their down payment, implies how much housing they can attain. In the intrinsic value approach, property value is viewed as a discounted present value of adjusted net rental income. Our approach does not involve a complex econometric model and only widely available data are used. The proposed indicators can guide households, financial markets and macroprudential authorities in their understanding of house prices development. To illustrate the concepts, we analyze the housing prices in the Czech Republic and assess the degree of market over-and undervaluation. ER -