Market Conditions, Marketing Time, and House Prices

摘要

We examine whether the relationship between marketing time and selling price changes with conditions in the Auckland housing market. Our sample covers periods when house prices rise (2006:Q1-2007:Q3), then decline (2007:Q4-Q4 2008:Q4), and lastly resume appreciating (2009:Q1-2010:Q3). We estimate hedonic pricing models for each identified subperiod. Our results indicate that the coefficient of time-on-market (TOM) is clearly influenced by the changing market conditions. In buoyant market conditions, houses that remain unsold are subject to a stigma discount. TOM, however, does not significantly impact price in a falling market.