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.
10 November 2020Ortec Finance to present at World Summit AI
David Kroon, Research Engineer at Ortec Finance’s R&D Labs to speak about Machine Learning in Automated Valuation Models at World Summit AI on November 12.
24 February 20202019 Customer Satisfaction Survey shows consistent high scores
The Ortec Finance Customer Satisfaction Survey 2019, shows consistent high scores!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 / Wealth Planning and Monitoring
08 October 2019From strategic portfolio management to the right policy per complex with one comprehensive module
Increasing regulations on sustainability. Tenants who have become more critical. Limited financial resources. These are just a few examples of serious challenges that housing corporations will have to face in the coming years. Is it possible to find the right balance between social, financial and property objectives?
12 July 2018Client Story Maasdelta Groep
Maasdelta Groep is a medium-sized housing association with offices in Maassluis, Hellevoetsluis and Spijkenisse. Maasdelta has 175 employees and has 16,500 homes and business premises under its management. Over the next few years, Maasdelta aims to provide a wide range of sustainable and affordable housing.
26 June 2018Ortec Finance becomes a signatory to UN-supported Principles for Responsible Investment (PRI)
Ortec Finance has become a signatory to the UN-supported Principles for Responsible Investment (PRI). By adding its name to a list of 2000 esteemed organisations around the world who have publicly demonstrated their commitment to responsible investment, the company formally reinforces and strengthens its position in sustainable investment.
26 September 2017Interactive business cycle chart
Business cycles are one of the defining characteristics of realistic market behaviour (“stylized facts”) in asset prices, yield curves and volatilities, as well as in the broader macro-economic environment. It is therefore important to take business cycles into account when making investment decisions.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 / Economic Scenario Generator / Goal Based Planning / Performance Measurement and Attribution / Real Estate Management / Retirement Planning / Strategic Risk Management / Wealth Planning and Monitoring
29 August 2017The Hierarchical Repeat Sales Model for Granular Commercial Real Estate and Residential Price Indices
This paper concerns the estimation of granular property price indices incommercial real estate and residential markets. We specify and apply a repeat salesmodel with multiple stochastic log price trends having a hierarchical additive structure: One common log price trend and cluster specific log price trends in deviationfrom the common trend.