Days on market and home sales
Name
Tucker_Days on market.pdf
Size
719.63 KB
Format
Adobe PDF
Checksum (MD5)
b883cc3601a0f77aed978812c770e1dc
Author(s)
Tucker, Catherine Elizabeth
Zhang, Juanjuan
Zhu, Ting
Date Issued
June 2013
Journal
RAND Journal of Economics
Publisher
John Wiley & Sons, Inc
Citation
Tucker, Catherine, Juanjuan Zhang, and Ting Zhu. “Days on Market and Home Sales.” The RAND Journal of Economics 44, no. 2 (June 2013): 337–360.
Version
Author's final manuscript
Abstract
In 2006, Massachusetts adopted a new policy that prohibits home sellers from resetting their properties’ days on market through relisting. Massachusetts homes exposed to the policy change experienced a $16,000 reduction in sale price relative to Rhode Island homes. Slow-moving homes suffered a greater reduction, but newer listings only had a small increase in sale price. One reason is that some buyers were unaware of sellers’ manipulation of days on market and thus unable to recognize authentically new listings. Sellers reacted to the new policy by cutting listing prices, although in towns where listing price history was transparent, sellers raised listing prices to dampen the stigma of slow sales.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1111/1756-2171.12022
