House prices doubled or tripled and then fell back to their initial values. When house prices increase it’s not uncommon for some potential house buyers to become more — not less — motivated to buy. They look at those past price increases and they want to buy as soon as possible before house prices increase any more. Speculation in Amsterdam 1714-1750 Housing Bubble2-Year Price LagThe Amsterdam study found that house price increases were explained, in part, by house price increases the previous year. The study found house price increases were explained even more by house price increases TWO years earlier!

Source: Forbes April 11, 2019 14:16 UTC