Equity and Time to Sale in the Real Estate Market.

S-Tier
Journal: American Economic Review
Year: 1997
Volume: 87
Issue: 3
Pages: 255-69

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Evidence from the Boston condominium market of the early 1990s reveals that an owner's equity position determines his experience as a seller. An owner of a property with a high loan-to-value ratio sets a higher asking price, has a higher expected time on the market and, if he sells, receives a higher price than an owner with proportionately less debt. The down payment requirement for purchasers, but not incumbent owners, provides a simple explanation for this phenomenon among owner-occupants. The results provide supporting evidence for equity-based aggregate theories of price- volume movements in the housing market. Copyright 1997 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:87:y:1997:i:3:p:255-69
Journal Field
General
Author Count
2
Added to Database
2026-01-25