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Cycles in housing markets occur in recurrent and irregular patterns. The amplitude of these cycles is usually considerably larger compared to the general business cycles. Furthermore, housing market cycles have considerably longer wavelengths compared to the business cycle. Housing market cycles often affect the whole economy heavily, which is a good reason for trying to keep the housing market free from cycles. In general the underlying mechanisms for housing market cycles are not widely understood. Housing market models usually employs a set of variables such as change in GDP, interest...

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