Days on market and home sales
Author(s)Tucker, Catherine Elizabeth; Zhang, Juanjuan; Zhu, Ting
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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.
DepartmentSloan School of Management
RAND Journal of Economics
John Wiley & Sons, Inc
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.
Author's final manuscript