Fundamentals or trends? A long-term perspective on house prices

P Eichholtz, Ronald Huisman, R Zwinkels

Research output: Contribution to journalArticleAcademicpeer-review

22 Citations (Scopus)


Using a long-term time series covering 350 years of house prices along the Herengracht in Amsterdam, we examine whether a fundamental factor or a trend explains house prices and whether their explanatory power is time varying. We find that agents in the housing market switch in their formation of expectations about future changes in house prices between fundamental and momentum strategies. Specifically, we show that agents base their expectations more on fundamentals during economic slowdowns and more on recent trends or momentum during economic booms.
Original languageEnglish
Pages (from-to)1050-1059
Number of pages10
JournalApplied Economics
Issue number10
Publication statusPublished - 11 Dec 2014

Research programs

  • ESE - F&A


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