Housing prices and the optimal time-on-the-market decision

作者：Inaltekin Hazer; Jarrow Robert A^*; Saglam Mehmet; Yildirim Yildiray

来源：Finance Research Letters, 2011, 8(4): 171-179.

DOI：10.1016/j.frl.2011.06.001

• Real estate
• Sale price
• Time-on-the-market
• Optimal waiting time

This paper provides a model for housing prices based on a seller solving the optimal time-on-the market problem. Given the seller's optimal time-on-the market, analytical expressions are provided for both the expected time-on-the-market and the sales price. These expressions facilitate the computation of comparative statics. Consistent with economic intuition, we show that (i) both the expected time-on-the market and sales price decrease as interest rates increase, (ii) the expected time-on-the market increases and the expected sales price decreases as offer activity declines, and (iii) the expected time-on-the market and expected sales price both increase as the list price increases.

• 出版日期2011-12