Equity and Time to Sale in the Real Estate Market

David Genesove*, Christopher J. Mayer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

238 Scopus citations


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 languageAmerican English
Pages (from-to)255-269
Number of pages15
JournalAmerican Economic Review
Issue number3
StatePublished - Jun 1997
Externally publishedYes


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