Risk Assessment of Housing Market Segments: The Lender’s Perspective
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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
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Author
Date
2018-10-26
Major/Subject
Mcode
Degree programme
Language
en
Pages
22
Series
Journal of Risk and Financial Management, Volume 11, issue 4
Abstract
It is well known that risk factors influence how investment portfolios perform from a lender’s perspective; therefore, a thorough risk assessment of the housing market is vital. The aim of this paper was to analyze the risks from housing apartments in different housing market segments by using the Stockholm, Sweden, owner-occupied apartment market as a case study. By applying quantitative and systems engineering methods, we (1) established the relationship between the overall housing market and several housing market segments, (2) analyzed the results from the quantitative model, and (3) finally provided a feasible portfolio regarding risk control based on the given data. The goal was to determine how different housing segment factors could reveal risk towards the overall market and offer better outlooks for risk management when it comes to housing apartments. The results indicated that the risk could be reduced at the same time as the return increased. From a lender’s perspective, this could reduce the overall risk.Description
Keywords
mortgage portfolio, housing segments;, risk assessment, hedonic modeling, analytic hierarchy process
Other note
Citation
Wilhelmsson , M & Zhao , J 2018 , ' Risk Assessment of Housing Market Segments: The Lender’s Perspective ' , Journal of Risk and Financial Management , vol. 11 , no. 4 . https://doi.org/10.3390/jrfm11040069
