This paper examines what determines the correlation between prices and turnover in European housing markets. Using a panel vector autoregressive model, we find that there is a particulary strong feedback mechanism between prices and turnover.
Momentum effects are another important reason why prices and turnover are correlated. Common underlying factors, such as GDP and interest rates, also explain part of the price-turnover correlation.
The result in this paper impy that, to understand price and turnover dynamics, it is important to model prices and turnover als two interdependant processes. There is a considerable bias in the coefficient estimates of standard house price models if this dependency is not explicity taken into account.
19 January 2022Agglomeration Economies and Capitalization Rates: Evidence from the Dutch Real Estate Office Market
In this paper Arno van der Vlist, Marc Francke and Dennis Schoenmaker analyze whether agglomerations of economic activity result in higher rents for users.
13 September 2021Precision in a Seller’s Market: Round Asking Prices Lead to Higher Counteroffers and Selling Prices
This paper proposes that the advice is useful, but only in a buyer’s market, in which buyers counter below the asking price. In a seller’s market, in which buyers counter above the asking price, sellers who wish to receive high counteroffers and sell for high prices should set round asking prices.
07 September 2021Ortec Finance COO Martijn Vos in CIO’s top 20 global most influential knowledge brokers
Each year, CIO asks a varied group of respected chief investment officers and allocators which consultants and advisors have “done right by them” for the current markets.Asset Management / Banks Retail and Private / Housing Associations / Independent Financial Advisors / Insurance Companies / Municipalities / Pension Funds / Sovereign Wealth Funds / Wealth Management / Asset Allocation / Asset Liability Management / Climate ESG Solutions / Economic Scenario Generator / Goal Based Planning / Performance Measurement and Attribution / Real Estate Management / Real Estate Valuation / Retirement Planning / Risk neutral scenarios / Strategic Risk Management / Vastgoedfinancien / Vastgoedsturing / Vastgoedwaardering / Wealth Planning and Monitoring
19 August 2021Out-of-Sample House Price Prediction by Hedonic Price Models and Machine Learning Algorithms
In an illiquid market like the real estate market, market values are not readily available. Transactions are scarce and do not always reflect market value. As a consequence, appraisal values play an important role to inform agents in decision making, financial reporting and for property taxes.
16 August 2021Expensive houses but no bubble in Amsterdam
Houses in Amsterdam are expensive – everybody agrees on that. Prices have risen every year since 2013. Even for middle incomes, living in the city is no longer affordable.
15 June 2021Investment performance method by Ortec Finance republished in Journal of Performance Measurement
Ortec Finance is honored that the Journal of Performance Measurement (JPM) republished a Landmark article that was co-authored by Elske van de Burgt
12 February 20212020 Customer Satisfaction Survey shows once again consistent high scores
For the third year in a row, the survey shows consistent high scores on satisfaction!Asset Management / Banks Retail and Private / Housing Associations / Independent Financial Advisors / Insurance Companies / Municipalities / Pension Funds / Sovereign Wealth Funds / Wealth Management / Asset Allocation / Asset Liability Management / Climate ESG Solutions / Economic Scenario Generator / Goal Based Planning / Performance Measurement and Attribution / Retirement Planning / Risk neutral scenarios / Strategic Risk Management / Wealth Planning and Monitoring / Vastgoedwaardering / Vastgoedfinancien / Vastgoedsturing