Days on Market and Home Sales

Catherine Tucker, Juanjuan Zhang and Ting Zhu ()
Additional contact information
Ting Zhu: Booth School of Business, University of Chicago

No 09-16, Working Papers from NET Institute

Abstract: In April 2006, the real estate listing service in Massachusetts adopted a new policy that prohibits home sellers from resetting their property’s “days on market” to zero through relisting. We study the effect of this new policy on single-family home sales along the Massachusetts-Rhode Island border, using homes in Rhode Island, which did not change its policy, as the control group. We find that the policy change leads to a relative sale price reduction of around $11,000 for affected homes in Massachusetts. Homes caught in the middle of the policy change are the hardest hit; the sudden release of the cumulative days on market information lowers the average sale price by $21,500. Sellers respond to the new policy by reducing the listing price to shorten their property’s days on market.

Keywords: Days on Market; Relisting; herding (search for similar items in EconPapers)
JEL-codes: D80 L85 R21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009-08, Revised 2009-08
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Days on market and home sales (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:net:wpaper:0916

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