IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v10n11995p115-127.html
   My bibliography  Save this article

The Pricing of Housing and Mortgage Services for First-Time Versus Repeat Homebuyers

Author

Abstract

This study examines efficiency in the pricing of housing and mortgage services across first-time and repeat homebuyers. A logit model is used to test a number of variables for significant differences across first-time buyers and repeat buyers for a sample of brokered real estate sales. The results show that the housing market is somewhat less than completely efficient in providing its services. The logit results for the adjustable-rate mortgage segment show that first-time homebuyers are more likely to be associated with a higher sale price per square foot and higher discount points than repeat buyers. The results show that first-time homebuyers tend to be younger and have less household income than repeat homebuyers. For the full sample of data, the results show that higher sale price/square foot ratios and lower downpayment/sale price ratios are more likely to be associated with first-time homebuyers. For the fixed-rate mortgage segment of the data, the only distinguishing variables are downpayment/sale price and buyer age (both lower for first-time homebuyers). Type of buyer cannot be distinguished by sale price/square foot, contract interest rate, discount points, and other variables. For the adjustable-rate mortgage segment of the data, type of buyer can be distinguished by sale sprice/square foot (higher for first-time buyers), downpayment/sale price (lower for first-time buyers), and discount points (higher for first-time buyers).

Suggested Citation

  • G. Stacy Sirmans & Enrico J. Ferreira, 1995. "The Pricing of Housing and Mortgage Services for First-Time Versus Repeat Homebuyers," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 115-127.
  • Handle: RePEc:jre:issued:v:10:n:1:1995:p:115-127
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol10n01/v10p115.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Lawrence D. Jones, 1989. "Current Wealth and Tenure Choice," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 17-40.
    2. Mankiw, N. Gregory & Weil, David N., 1989. "The baby boom, the baby bust, and the housing market," Regional Science and Urban Economics, Elsevier, vol. 19(2), pages 235-258, May.
    3. Joe Peek & James A. Wilcox, 1991. "A real, affordable mortgage," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 51-66.
    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. D. Duffy & M.J. Roche, 2005. "Heterogeneous Homebuyers, Mortgage Choice and the use of Mortgage Brokers," Economics, Finance and Accounting Department Working Paper Series n1520205, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    2. Vicky L. Seiler & Michael J. Seiler & James R. Webb, 2006. "Impact of Homebuyer Characteristics on Service Quality in Real Estate Brokerage," International Real Estate Review, Asian Real Estate Society, vol. 9(1), pages 44-61.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    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:jre:issued:v:10:n:1:1995:p:115-127. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster). General contact details of provider: http://www.aresnet.org/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.