 To Sell or Not to Sell: List Price, Transaction Price and Marketing Time in the Housing MarketWorking Papers from The George Washington University, Institute for International Economic Policy Abstract: This paper specifies and estimates a structural model of home seller behavior. The model is an application of search theory to housing and is estimated using method of moments. The estimation method uncovers an analytical closed-form relationship between reduced- form coefficients of hedonic and marketing time equations and the structural parameters. Estimation can thus be performed using individual level or aggregate data. The model is first estimated using individual housing transaction data from a large suburb of the Washington D.C. metropolitan area during 2006, and it is used to analyze the relationship between list prices and marketing time. Then, for each year in the period 2002-2008, aggregate data are used to compute one structural parameter that measures home sellers bargaining power. Trends of this estimate coincide with popular perceptions about the heat of the housing market in the area. Keywords: Real Estate Market; Search Models; Asking Price; Time on the Market; Sellers Market Power; Bargaining Power; Market Heat Index (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2010-23 Access Statistics for this paper More papers in Working Papers from The George Washington University, Institute for International Economic Policy Contact information at EDIRC. |
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