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Heterogeneity of sellers in housing market: Difference in pricing strategies

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  • Ozhegov, Evgeniy M.
  • Sidorovykh, Aleksandra S.

Abstract

The present study analyzes Perm, Russia residential housing market supply focusing on sellers’ heterogeneity. Many indicators of heterogeneity were considered in the previous research, and all of them were proved to have a great impact on housing prices and time on the market. However, the gap exists in evaluating sellers’ pricing strategies in dynamics mostly because of unavailable data. Current study clears out the effect of time on price using data on asking price dynamics. We employ semiparametric sample selection estimation procedure which accounts for the unobserved property characteristics and non-random selection of objects out of the sample. We consider two main types of sellers: real estate agents and property owners, and show that real estate agents appear to be more impatient compared to property owners. Specifically, they set a lower asking price initially and are more likely to revise it over time if the object is not sold.

Suggested Citation

  • Ozhegov, Evgeniy M. & Sidorovykh, Aleksandra S., 2017. "Heterogeneity of sellers in housing market: Difference in pricing strategies," Journal of Housing Economics, Elsevier, vol. 37(C), pages 42-51.
    • Handle: RePEc:eee:jhouse:v:37:y:2017:i:c:p:42-51
    DOI: 10.1016/j.jhe.2017.03.002
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    More about this item

    Keywords

    Real estate; Heterogeneity; Motivation; Pricing; Semiparametrics;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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