Spatial Heterogeneity in Listing Duration: The Influence of Relative Location to Marketability

Abstract

Research on the relevance of location in real estate markets has been limited in studies of time on market. A semi-parametric duration model, adjusted for groupwise heterogeneity and corrected for bias, is employed on residential data to examine marketing time till sold as a function of multiple spatial planes. Including both locally defined neighborhood proxies and absolute location signatures into the models allows for controlling the influence that location externalities have on the components of individual properties and their relationship to marketing time. The results indicate that the impact on marketability from characteristics on a specific property vary by location within a housing market. The results are consistent with the pricing literature, suggesting that prime locations can command price premiums and potentially result in reduced marketing time.

Keywords: housing, tenure, ownership. cox regression