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Property delisting, housing cycle and pricing bias

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  • Cheng, Ping
  • Lin, Zhenguo
  • Liu, Yingchun

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 pricing 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.

Suggested Citation

  • Cheng, Ping & Lin, Zhenguo & Liu, Yingchun, 2011. "Property delisting, housing cycle and pricing bias," Journal of Housing Economics, Elsevier, vol. 20(2), pages 152-157, June.
    • Handle: RePEc:eee:jhouse:v:20:y:2011:i:2:p:152-157
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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