We will study the determinants of prices and transactions on the housing market using unique Dutch data from the NVM data base. The project aims at integrating the study of price formation and liquidity. We will ask what determines the initial asking price and the time a house spends on the market until it is sold. We also plan to use non-parametric methods in estimating a set of house price indexes that take variations in liquidity into account. In the end the results will help us to assess the risk and return of home ownership.
