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Time-On-Market and House Prices in Auckland, New Zealand

Author/s: Olga Filippova, Shanni Fu

Date Published: 1/01/2011

Published in: Volume 17 - 2011 Issue 1 (pages 70 - 91)

Abstract

This paper offers the first empirical investigation of the impact of marketing time on house sale price in Auckland, New Zealand. Using residential sales data and life table analysis, the impact of market cycle on the hazard of sale was tested. It was found that properties in a booming market sold more quickly than properties sold in a declining market. In addition, the relationship between time-on-market and price is tested using a two stage least square estimation. The results show that prolonged time-on-market reduces sale price. However, this impact is not uniform with variations observed due to changes in market conditions.

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References

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