Competing Risks in a Time-on-the-Market Analysis

Erik de Wit

ERES from European Real Estate Society (ERES)

Abstract: Sellers of owner occupied dwellings can decrease the expected time-till- sale of their dwelling by lowering the advertised listprice of the dwelling.This article investigates the e ect of listprice reductions on the transition rates of dwellings from the market through i) a sale, or ii) a withdrawal from the market. We use a timing-of-events model with competing risks (a sale or a withdrawal of the dwelling from the market). Our data con- sists of all dwellings put on the market between the start of 2005 and the end of 2007, o ered through brokers which are a member of the NVM (Dutch Real Estate Brokers Association). Our data covers approximately 75% of all owner occupied dwellings o ered for sale in the Netherlands during this period. We nd that a listprice reduction raises the transi- tion rate from market to sale by more than 260%, a listprice reduction raises the transition rate from market to withdrawal by more than 40%.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2009-01-01
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Competing Risks in a Time on the Market Analysis (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2009_307

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