Do house price developments spillover across euro area countries? Evidence from a global VAR

► Euro area house price spillovers are analysed in a GVAR with housing demand variables. ► We use quarterly data for 7 countries (90% of euro area GDP) over 1971-2009. ► The results indicate limited spillovers on aggregate but strong country heterogeneity. ► There is a strong importance for economic or geographic weight in spillover magnitude.