房地产英文文献.pdf

J Real Estate Finance Econ
DOI -009-9167-1
Home Price, Time-on-Market, and Seller Heterogeneity
Under Changing Market Conditions
Ping Cheng & Zhenguo Lin & Yingchun Liu
# Springer Science + Business Media, LLC 2009
Abstract This paper develops a formal model to examine the effect of changing
market conditions and individuals’ selling constraints on selling price and time-on-
market. Using the concept of Relative Liquidity Constraint (RLC)—a stochastic
variable that captures the randomness of future individual constraints and market
conditions—the study presents the first ex ante analysis that extends the
investigation of the issue of seller heterogeneity to the point of the buying decision,
that is, from the perspective of the buyer’s (future seller’s) point of view. We show
that seller constraint, as well as the uncertainty of such a constraint, significantly
depresses the expected selling price and increases risk. Our closed-form formulas
provide a set of simple quantitative tools that enable buyers and sellers to adjust the
“market average” to their ex ante “individual expectations”.
Keywords Home price . Time-on-market . Seller heterogeneity. Market conditions
P. Cheng
Department of Industry Study, College of Business, Florida Atlantic University, 777 Glades Road,
Boca Raton, FL 33431, USA
e-mail: ******@
Z. Lin (*) : Y. Liu
Fannie Mae, 3900 Wisconsin Avenue, Washington, DC 20016, USA
e-mail: len_lin@
Y. Liu
e-mail: yingchun_liu@
P. Cheng et al.
“Happy families are all alike; every unhappy family is unhappy in its own way”.
Leo Tolstoy
(Anna Karenina, Chapter 1)
When es to real estate, there are two kinds of sellers—those who can afford
to wait for as long as it is necessary to sell at fair market values, and those who cannot
wait but have to sell more quickly due to various constraints. While every constrained
seller employs a selling strategy according to his unique situation, the unconstrained
seller