Dutch Housing Market Evaluation. A pre- and post-crisis comparison
Keywords
Loading...
Authors
Issue Date
2018-08-18
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This research examines and compares two sub periods, 1995-2008 and 2014-2017, of the Dutch housing market in terms of house price determinants, under- or overvaluation (house price gap), and potential corresponding bubble formation. The imputed rent model indicates that the Dutch housing market was overvalued in the first sub period whereas house prices were undervalued during the second sub period. The OLS regression models reveal that exogenous factors such as speculative demand were driving house prices away from their fundamental value in the first period, causing overvaluation. The housing market shows to be healthy at current time and house prices are expected to be in line with their fundamental value in 2018. It can therefore be concluded that the Dutch housing market was in a bubble in 2008, that current house prices reflect their fundamental value, and are not expected to face bubble behaviour or experience corrections in the near future.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen