List Prices in the US Housing Market

Darren K. Hayunga () and R. Kelley Pace ()
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Darren K. Hayunga: University of Georgia
R. Kelley Pace: Louisiana State University

The Journal of Real Estate Finance and Economics, 2017, vol. 55, issue 2, No 2, 155-184

Abstract: Abstract A seller sets the list price based upon their ex-ante perception of the trade-off between marketing duration versus transaction price, which depends on the liquidity of the property and the depth of the market. As such, list prices reflect property, market, and seller characteristics. In addition, Genesove and Mayer (2001) and Bokhari and Geltner (2011) use prospect theory to motivate how expected nominal losses and gains from sale can also influence list prices. We consider these multiple factors affecting list prices through a rich dataset from the National Association of Realtors, which contains variables on seller motivations, structure liquidity, and other difficult to observe variables such as seller age, race, and income.

Keywords: List prices; Sellers’ motivations; Sellers’ characteristics; Loss aversion; Urgency; List price reductions (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11146-016-9555-2

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