Abstract
Evidence from the Boston condominium market of the early 1990's reveals that an owner's equity position determines his experience as a seller. An owner of a property with a high loan-to-value ratio sets a higher asking price, has a higher expected time on the market and, if he sells, receives a higher price than an owner with proportionately less debt. The down payment requirement for purchasers, but not incumbent owners, provides a simple explanation for this phenomenon among owner-occupants. The results provide supporting evidence for equity-based aggregate theories of price-volume movements in the housing market.
| Original language | American English |
|---|---|
| Pages (from-to) | 255-269 |
| Number of pages | 15 |
| Journal | American Economic Review |
| Volume | 87 |
| Issue number | 3 |
| State | Published - Jun 1997 |
| Externally published | Yes |