The Repeat Time-on-The-Market Index

47 Pages Posted: 26 Mar 2015 Last revised: 17 Apr 2019

See all articles by Paul E. Carrillo

Paul E. Carrillo

George Washington University - Department of Economics

Benjamin Williams

George Washington University

Date Written: February 2019

Abstract

We propose two new indices that measure the evolution of housing market liquidity. The key features of both indices are a) their ability to control for unobserved heterogeneity exploiting repeat listings, b) their use of censored durations (listings that are expired and/or withdrawn from the market), and c) their computational simplicity. The first index computes proportional displacements in the home sale baseline hazard rate. The second estimates the relative change in median marketing time. The indices are computed using about 1.8 million listings in 15 US urban areas. Results suggest that both accounting for censoring and controlling for unobserved heterogeneity are key to measure housing market liquidity.

Keywords: Housing liquidity, non-parametric models, proportional hazard, repeat-sales

JEL Classification: C41, R31

Suggested Citation

Carrillo, Paul E. and Williams, Benjamin, The Repeat Time-on-The-Market Index (February 2019). Available at SSRN: https://ssrn.com/abstract=2584558 or http://dx.doi.org/10.2139/ssrn.2584558

Paul E. Carrillo (Contact Author)

George Washington University - Department of Economics ( email )

Monroe Hall Suite 340
2115 G Street NW
Washington, DC 20052
United States

Benjamin Williams

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

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