Market buoyancy, information transparency and pricing strategy in the Scottish housing market

Nan Liu

Urban Studies, 2021, vol. 58, issue 16, 3388-3406

Abstract: In housing markets there is a trade-off between selling time and selling price, with pricing strategy being the balancing act between the two. Motivated by the Home Report scheme in Scotland, this paper investigates the role of information symmetry played in such a trade-off. Empirically, this study tests if sellers’ pricing strategy changes when more information becomes available and whether this, in turn, affects the trade-off between the selling price and selling time. Using housing transaction data of North-East Scotland between 1998Q2 and 2018Q2, the findings show that asking price has converged to the predicted price of the property since the introduction of the Home Report. While information transparency reduces the effect of ‘overpricing’ on selling time, there is little evidence to show that it reduces the impact of pricing strategy on the final selling price in the sealed-bid context.

Keywords: built environment; economic processes; housing; information transparency; local government; pricing strategy; real estate; 建筑环境; ç» æµŽè¿‡ç¨‹; ä½ æˆ¿; ä¿¡æ ¯é€ æ˜Žåº¦; 地方政府; 定价策略; 房地产 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:58:y:2021:i:16:p:3388-3406

DOI: 10.1177/0042098021991784

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