Convergence in US house prices

- We study the presence of convergence in US housing prices.
- We find evidence in favor of US housing market segmentation.
- The bursting of the housing bubble helps to explain the results.
- The US housing market statistically changes after 2010.
- The effects are not similar for the MSA database when compared to the State database.

This paper analyses the convergence of US house prices. Our results confirm the existence of some degree of segmentation in the US housing market. We also provide robust evidence that the bursting of the housing price bubble has altered this market, observing different results when the sample includes information posterior to 2010. However, we appreciate different effects depending on the geographical level of disaggregation that is employed.