A Model of Time-on-Market and Real Estate Price Under Sequential Search with Recall

被引：52

作者：

Cheng, Ping ^{[1
]}

Lin, Zhenguo ^{[2
]}

Liu, Yingchun ^{[2
]}

机构：

[1] Florida Atlantic Univ, Boca Raton, FL 33431 USA

[2] Fannie Mae, Washington, DC 20016 USA

来源：

REAL ESTATE ECONOMICS | 2008年 / 36卷 / 04期

关键词：

D O I：

10.1111/j.1540-6229.2008.00231.x

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This article develops a model and provides a closed-form formula to uncover the theoretical relationship between real estate price and time on market (TOM). Our model shows a nonlinear positive price-TOM relationship, and it identifies three economic factors that affect the impact of TOM on sale price. We demonstrate that conventional metrics for real estate return and risk, which are borrowed in a naive fashion from finance theory, do not account for marketing period risk and tend to overestimate real estate returns and underestimate real estate risks. Our model provides a simple way to correct such bias. This theory helps to explain the apparent "risk-premium puzzle" in real estate.

引用

页码：813 / 843

页数：31

共 39 条

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