The Price–Time-on-Market Puzzle Revisited: Evidence from Big Data

27 Pages Posted: 4 May 2021

See all articles by Yunlong Huang

Yunlong Huang

University College London

Stanimira Milcheva

University College London

Date Written: April 29, 2021

Abstract

This paper provides new evidence on the relationship between time-on-market (TOM) and house prices. Using big data techniques, we construct a rich dataset on residential transaction prices in England between 2018 and 2020, their listing information, energy performance, and property taxes. We use two novel instrumental variables (IVs) – the price revision duration and the council tax band for TOM and price respective. We show a positive and simultaneously determined relationship between price and TOM, in line with search theory. We also demonstrate that sellers not looking to use the proceeds from the sale as a down-payment for a new property, i.e. ’chain-free’ sellers, list and transact at a lower price, all else equal.

Keywords: Time on market, TOM, house price, 2SLS, chain-free, big data.

Suggested Citation

Huang, Yunlong and Milcheva, Stanimira, The Price–Time-on-Market Puzzle Revisited: Evidence from Big Data (April 29, 2021). Available at SSRN: https://ssrn.com/abstract=3837325 or http://dx.doi.org/10.2139/ssrn.3837325

Yunlong Huang (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Stanimira Milcheva

University College London ( email )

1-19 Torrington Place
Department of Construction and Project Management
London, London WC1E 7HB
United Kingdom

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