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 |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Tucker_Zhang_Zhu_09-16.pdf | 533.41 kB | Adobe PDF | View/Open |
Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.