Commodity price movements directly impact local house prices in Australia and New Zealand.
The article explores how changes in commodity prices impact house prices in Australia and New Zealand. The researchers used a detailed model to show that commodity prices affect house prices directly and indirectly through economic factors. These price changes act more like boosts to income rather than increased costs. Different regions respond differently to energy and non-energy commodity price shifts. The findings are consistent across different methods used. Future research directions are also suggested.