TY - JOUR
T1 - Equity and Time to Sale in the Real Estate Market
AU - Genesove, David
AU - Mayer, Christopher J.
PY - 1997/6
Y1 - 1997/6
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0031413175&partnerID=8YFLogxK
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AN - SCOPUS:0031413175
SN - 0002-8282
VL - 87
SP - 255
EP - 269
JO - American Economic Review
JF - American Economic Review
IS - 3
ER -
