IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v53y2016i13p2867-2884.html
   My bibliography  Save this article

Measuring the influence of space and time effects on time on the market

Author

Listed:
  • Stanley McGreal

    (University of Ulster, UK)

  • Paloma Taltavull de La Paz

    (University of Alicante, Spain)

  • Valerie Kupke

    (University of South Australia, Australia)

  • Peter Rossini

    (University of South Australia, Australia)

  • Paul Kershaw

    (University of South Australia, Australia)

Abstract

This paper is concerned with spatial effects of time on the market for residential property and time varying relationships using a dataset of properties from the Adelaide metropolitan area, Australia, during the period 2002–2011. The analysis firstly considers the spatial dependence in time on the market and secondly extends the analysis to a space-time model using 2SLS regression. The findings demonstrate the complexity in spatial analysis with results indicating a random distribution of time on the market in 86% of observations a pattern that is consistent over time. Spatial autocorrelation is shown to increase time on the market in the subject property while spatial error decreases time on the market in the subject property suggesting a high level of market transparency and improved liquidity. The compensating or nullifying effects of both types of spatial association is shown to contribute to the random distribution observed in time on the market. A strong explanatory capacity of the business cycle suggests that economic drivers are leading time on the market rather than prices.

Suggested Citation

  • Stanley McGreal & Paloma Taltavull de La Paz & Valerie Kupke & Peter Rossini & Paul Kershaw, 2016. "Measuring the influence of space and time effects on time on the market," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2867-2884, October.
    • Handle: RePEc:sae:urbstu:v:53:y:2016:i:13:p:2867-2884
    DOI: 10.1177/0042098015596923
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098015596923
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098015596923?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Haurin, Donald & McGreal, Stanley & Adair, Alastair & Brown, Louise & Webb, James R., 2013. "List price and sales prices of residential properties during booms and busts," Journal of Housing Economics, Elsevier, vol. 22(1), pages 1-10.
    2. Han Bin Kang & Mona J. Gardner, 1989. "Selling Price and Marketing Time in the Residential Real Estate Market," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 21-35.
    3. Eric J. Levin & Gwilym B. J. Pryce, 2007. "A Statistical Explanation for Extreme Bids in the House Market," Urban Studies, Urban Studies Journal Limited, vol. 44(12), pages 2339-2355, November.
    4. Stanley McGreal & Paloma Taltavull de La Paz, 2013. "Implicit House Prices: Variation over Time and Space in Spain," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2024-2043, August.
    5. Carl R. Gwin & Seow-Eng Ong & Carol F. Gwin, 2002. "Seller versus Broker: Timing of Promotion," Journal of Real Estate Research, American Real Estate Society, vol. 24(1), pages 27-46.
    6. Genesove, David & Mayer, Christopher J, 1997. "Equity and Time to Sale in the Real Estate Market," American Economic Review, American Economic Association, vol. 87(3), pages 255-269, June.
    7. Anglin, Paul M & Rutherford, Ronald & Springer, Thomas M, 2003. "The Trade-Off Between the Selling Price of Residential Properties and Time-on-the-Market: The Impact of Price Setting," The Journal of Real Estate Finance and Economics, Springer, vol. 26(1), pages 95-111, January.
    8. Donald Haurin, 1988. "The Duration of Marketing Time of Residential Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 396-410, December.
    9. Geoffrey Turnbull & Jonathan Dombrow, 2007. "Individual Agents, Firms, and the Real Estate Brokerage Process," The Journal of Real Estate Finance and Economics, Springer, vol. 35(1), pages 57-76, July.
    10. Paul K. Asabere & Forrest E. Huffman & Seyed Mehdian, 1993. "Mispricing and Optimal Time on the Market," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 149-155.
    11. Terrence Clauretie & Nasser Daneshvary, 2008. "Principal–Agent Conflict and Broker Effort Near Listing Contract Expiration: The Case of Residential Properties," The Journal of Real Estate Finance and Economics, Springer, vol. 37(2), pages 147-161, August.
    12. James E. Larsen & Won J. Park, 1989. "Non‐Uniform Percentage Brokerage Commissions and Real Estate Market Performance," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 422-438, December.
    13. Michel Glower & Donald R. Haurin & Patric H. Hendershott, 1998. "Selling Time and Selling Price: The Influence of Seller Motivation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(4), pages 719-740, December.
    14. Norman G. Miller, 1978. "Time on the Market and Selling Price," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 6(2), pages 164-174, June.
    15. Springer, Thomas M, 1996. "Single-Family Housing Transactions: Seller Motivations, Price, and Marketing Time," The Journal of Real Estate Finance and Economics, Springer, vol. 13(3), pages 237-254, November.
    16. Curtis R. Taylor, 1999. "Time-on-the-Market as a Sign of Quality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 555-578.
    17. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
    18. G. Donald Jud & Terry G. Seaks & Daniel T. Winkler, 1996. "Time on the Market: The Impact of Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 447-458.
    19. Fred A. Forgey & Ronald C. Rutherford & Thomas M. Springer, 1996. "Search and Liquidity in Single‐Family Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 24(3), pages 273-292, September.
    20. Stanley McGreal & Alastair Adair & Louise Brown & James R. Webb, 2009. "Pricing and Time on the Market for Residential Properties in a Major U.K. City," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 209-234.
    21. Jacob Belkin & Donald J. Hempel & Dennis W. McLeavey, 1976. "An Empirical Study of Time on Market Using Multidimensional Segmentation of Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 4(2), pages 57-75, June.
    22. Gwilym Pryce & Kenneth Gibb, 2006. "Submarket Dynamics of Time to Sale," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 34(3), pages 377-415, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liang, Cong & Hui, Eddie C.M. & Yip, Tsz Leung, 2018. "Time on market (TOM): The impact of new residential stamp duty," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 503(C), pages 1117-1130.
    2. Liang, Cong & Hui, Eddie C.M. & Yip, Tsz Leung & Huang, Yaoxuan, 2020. "Private land use for public housing projects: The Influence of a Government Announcement on Housing Markets in Hong Kong," Land Use Policy, Elsevier, vol. 99(C).
    3. Neil T Coffee & Tony Lockwood & Peter Rossini & Theo Niyonsenga & Stanley McGreal, 2020. "Composition and context drivers of residential property location value as a socioeconomic status measure," Environment and Planning B, , vol. 47(5), pages 790-807, June.
    4. Lockwood, Tony & Coffee, Neil T & Rossini, Peter & Niyonsenga, Theo & McGreal, Stanley, 2018. "Does where you live influence your socio-economic status?," Land Use Policy, Elsevier, vol. 72(C), pages 152-160.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Koch & Gunther Maier, 2015. "The influence of estate agencies’ location and time on Internet," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 147-171, October.
    2. Liang, Cong & Hui, Eddie C.M. & Yip, Tsz Leung, 2018. "Time on market (TOM): The impact of new residential stamp duty," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 503(C), pages 1117-1130.
    3. Stanley McGreal & Alastair Adair & Louise Brown & James R. Webb, 2009. "Pricing and Time on the Market for Residential Properties in a Major U.K. City," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 209-234.
    4. Bich Hong Nguyen Thi & Trong Hoai Nguyen & Thanh Hiep Truong, 2020. "The Role of Listing Price Strategies on the Probability of Selling a House: Evidence from Vietnam," Real Estate Management and Valuation, Sciendo, vol. 28(2), pages 63-75, June.
    5. Han, Lu & Strange, William C., 2015. "The Microstructure of Housing Markets," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 813-886, Elsevier.
    6. Gwilym Pryce, 2011. "Bidding Conventions and the Degree of Overpricing in the Market for Houses," Urban Studies, Urban Studies Journal Limited, vol. 48(4), pages 765-791, March.
    7. Charles Ka Yui Leung & Youngman Chun Fai Leong & Ida Yin Sze Chan, 2002. "TOM: Why Isn’t Price Enough?," International Real Estate Review, Global Social Science Institute, vol. 5(1), pages 91-115.
    8. Marcus Allen & Sheri Faircloth & Ronald Rutherford, 2005. "The Impact of Range Pricing on Marketing Time and Transaction Price: A Better Mousetrap for the Existing Home Market?," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 71-82, August.
    9. Velma Zahirovic-Herbert & Geoffrey Turnbull, 2008. "School Quality, House Prices and Liquidity," The Journal of Real Estate Finance and Economics, Springer, vol. 37(2), pages 113-130, August.
    10. Kimberly Goodwin & Ken Johnson & Leonard Zumpano, 2012. "Minimum Service Requirements, Limited Brokers and Menuing of Services," The Journal of Real Estate Finance and Economics, Springer, vol. 45(2), pages 471-490, August.
    11. Josep Maria Raya Vilchez & Aleksander Kucel, 2023. "How fiscal policy affects housing market dynamics: Evidence from Spain," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 323-347, April.
    12. John D. Benjamin & G. Donald Jud & G. Stacy Sirmans, 2000. "What Do We Know About Real Estate Brokerage?," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 5-30.
    13. Tatiana Cesaroni, 2022. "Average time to sell a property and credit conditions: Evidence from the Italian housing market survey," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 49-68, January.
    14. Marcus T. Allen & Justin D. Benefield & Ronald C. Rutherford, 2023. "Co-Listing Strategies: Better Transaction Outcomes?," The Journal of Real Estate Finance and Economics, Springer, vol. 67(3), pages 517-544, October.
    15. Anglin, Paul M & Rutherford, Ronald & Springer, Thomas M, 2003. "The Trade-Off Between the Selling Price of Residential Properties and Time-on-the-Market: The Impact of Price Setting," The Journal of Real Estate Finance and Economics, Springer, vol. 26(1), pages 95-111, January.
    16. Simon Stevenson & James Young, 2015. "The Role of Undisclosed Reserves in English Open Outcry Auctions," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 375-402, June.
    17. Velma Zahirovic-Herbert & Bennie D. Waller & Geoffrey K. Turnbull, 2020. "Properties that Sell at or above Listing Price: Strategic Pricing, Better Broker or Just Dumb Luck?," The Journal of Real Estate Finance and Economics, Springer, vol. 60(1), pages 53-76, February.
    18. Geoffrey Turnbull & Velma Zahirovic-Herbert, 2012. "The Transitory and Legacy Effects of the Rental Externality on House Price and Liquidity," The Journal of Real Estate Finance and Economics, Springer, vol. 44(3), pages 275-297, April.
    19. Liang, Cong & Hui, Eddie C.M. & Yip, Tsz Leung & Huang, Yaoxuan, 2020. "Private land use for public housing projects: The Influence of a Government Announcement on Housing Markets in Hong Kong," Land Use Policy, Elsevier, vol. 99(C).
    20. Steven Stelk & Leonard V. Zumpano, 2017. "Can Real Estate Brokers Affect Home Prices Under Extreme Market Conditions?," International Real Estate Review, Global Social Science Institute, vol. 20(1), pages 51-73.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:53:y:2016:i:13:p:2867-2884. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.