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Paper eres2009_307:
Competing Risks in a Time-on-the-Market Analysis

id eres2009_307
authors R. de Wit, Erik
year 2009
title Competing Risks in a Time-on-the-Market Analysis
source 16th Annual European Real Estate Society Conference in Stockholm, Sweden
summary Sellers of owner occupied dwellings can decrease the expected time-till- sale of their dwelling by lowering the advertised listprice of the dwelling.This article investigates the e ect of listprice reductions on the transition rates of dwellings from the market through i) a sale, or ii) a withdrawal from the market. We use a timing-of-events model with competing risks (a sale or a withdrawal of the dwelling from the market). Our data con- sists of all dwellings put on the market between the start of 2005 and the end of 2007, o ered through brokers which are a member of the NVM (Dutch Real Estate Brokers Association). Our data covers approximately 75% of all owner occupied dwellings o ered for sale in the Netherlands during this period. We nd that a listprice reduction raises the transi- tion rate from market to sale by more than 260%, a listprice reduction raises the transition rate from market to withdrawal by more than 40%.
keywords Household nance, housing market, time-on-the-market, duration models
series ERES:conference
content file.pdf (470,360 bytes)
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ratings Ratings: 5 5
session Housing
last changed 2009/09/16 16:22
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