Property Delisting, Housing Cycle and Pricing Bias

20 Pages Posted: 1 Dec 2010

See all articles by Ping Cheng

Ping Cheng

Florida Atlantic University - Finance

Yingchun Liu

Dept. of Finance, Insurance, Real Estate and Law, University of North Texas

Zhenguo (Len) Lin

Florida International University (FIU) - Hollo School of Real Estate

Date Written: November 29, 2010

Abstract

This paper provides a formal analysis on a well-known issue of the housing market observable transaction prices are a biased indication of the true market condition if significant numbers of listed properties are delisted without sale. We provide a closed-form formula to identify and correct such price bias. The model can help market participants and policy makers to form less biased views of the true state of the housing market, especially during the down cycles.

JEL Classification: R2

Suggested Citation

Cheng, Ping and Liu, Yingchun and Lin, Zhenguo, Property Delisting, Housing Cycle and Pricing Bias (November 29, 2010). 46th Annual AREUEA Conference Paper, Available at SSRN: https://ssrn.com/abstract=1717046 or http://dx.doi.org/10.2139/ssrn.1717046

Ping Cheng (Contact Author)

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States
561-297-3456 (Phone)
561-297-3686 (Fax)

Yingchun Liu

Dept. of Finance, Insurance, Real Estate and Law, University of North Texas ( email )

1155 Union Circle #305340
Denton, TX 76203
United States

Zhenguo Lin

Florida International University (FIU) - Hollo School of Real Estate ( email )

Miami, FL 33199
United States
3057799248 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
37
Abstract Views
956
PlumX Metrics