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The repeat time-on-the-market index

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  • Carrillo, Paul E.
  • Williams, Benjamin

Abstract

We propose two new indices that measure the evolution of the time it takes a home to sell or “time-on-the-market” (TOM). The key features of both indices are a) their ability to control for unobserved heterogeneity exploiting repeat listings, b) their use of censored durations (listings that are expired and/or withdrawn from the market), and c) their computational simplicity. The first index computes proportional displacements in the home sale hazard rate. The second estimates the relative change in median marketing time. The indices are computed using about 1.8 million listings in 15 US urban areas. Results suggest that it is important to account for both censoring and unobserved heterogeneity in measuring housing market liquidity.

Suggested Citation

  • Carrillo, Paul E. & Williams, Benjamin, 2019. "The repeat time-on-the-market index," Journal of Urban Economics, Elsevier, vol. 112(C), pages 33-49.
    • Handle: RePEc:eee:juecon:v:112:y:2019:i:c:p:33-49
    DOI: 10.1016/j.jue.2019.04.005
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    Cited by:

    1. Michele Loberto & Andrea Luciani & Marco Pangallo, 2022. "What Do Online Listings Tell Us about the Housing Market?," International Journal of Central Banking, International Journal of Central Banking, vol. 18(4), pages 1-52, October.
    2. Anenberg, Elliot & Ringo, Daniel, 2024. "Volatility in Home Sales and Prices: Supply or Demand?," Journal of Urban Economics, Elsevier, vol. 139(C).
    3. Dorinth van Dijk, 2019. "Local Constant-Quality Housing Market Liquidity Indices," DNB Working Papers 637, Netherlands Central Bank, Research Department.
    4. Justin Contat & Malcolm Rogers, 2022. "Housing Supply and Liquidity in the COVID-19 Era," FHFA Staff Working Papers 22-02, Federal Housing Finance Agency.
    5. 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).
    6. van Dijk, Dorinth W., 2024. "Local constant-quality housing market liquidity indices," Regional Science and Urban Economics, Elsevier, vol. 106(C).

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    More about this item

    Keywords

    Non-parametric models; Proportional hazard; Repeat sales;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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