Abstract: Generally, busts in housing prices lead to their booms. Short-term deviations of a house price cycle from its long-term upward trend can be a common phenomenon relevant to such changes. A periodically cyclical fluctuation has occurred to the Iranian housing market in the long run, e.g., nearly every 6 years. Moreover, business cycles, financial stability and household welfare are significantly influenced by the movements occurred in house prices. Central banks, financial supervision authorities and other economic agents highly need to be able to predict house prices. To determine house prices based on their cyclical components in this research, a wavelet decomposition method was utilized. Then, the boom-bust cycles of low frequency housing prices were analyzed.