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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29512
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| Title: | Days on Market and Home Sales |
| Authors: | Tucker, Catherine - MIT Sloan School of Management
Zhang, Juanjuan - MIT Sloan School of Management
Zhu, Ting - University of Chicago |
| Issue Date: | 2009 |
| Series/Report no.: | Net Institute Working Paper;09-16 |
| 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. |
| URI: | http://hdl.handle.net/2451/29512 |
| Appears in Collections: | NET Institute Working Papers Series
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