Abstract
This article, based on an empirical analysis, discusses factors affecting property prices in the Czech regions. It tries to identify periods of property price overvaluation by three alternative approaches: using ratios related to house prices (price-to-income and price-to-rent), using simple analysis of time trends and using panel regression.
The analysis identified overvalued property prices in 2002/2003 and partly also in 2007/2008. Accord-ing to the panel regression however, the size of the housing price overvaluation in 2007/2008 was relatively low, as the rise in property prices in this period was largely explainable by fundamentals.
From the regional perspective, there is a tendency for higher degree of overvaluation in regions with higher property prices. The exception is Prague, which seems to be a "specific" region.