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Does Time-on-Market Measurement Matter?

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  • Justin Benefield
  • William Hardin

Abstract

Time-on-market is one of the most commonly analyzed outcomes in the residential literature. However, existing research provides no consensus agreement on the actual definition of “time-on-market” and its calculation. Very little discussion of the numerous reasonable alternative definitions exists. To address this ambiguity, alternative definitions and related calculations of time-on-market are assessed. First, using multiple listing service data from a medium-sized United States city, five measures of time-on-market are modeled and across-model differences are evaluated. Second, using multiple listing service data from a large United States city, the importance of relisted properties in defining and assessing time-on-market is investigated. Results indicate that both time-on-market definition and the handling of relisted properties substantially influence model outcomes and the statistical significance of dependent variables. Results also suggest that much of the existing literature incorporating time-on-market warrants reevaluation using a consistent definition of marketing time and an adjustment for relisted properties. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Justin Benefield & William Hardin, 2015. "Does Time-on-Market Measurement Matter?," The Journal of Real Estate Finance and Economics, Springer, vol. 50(1), pages 52-73, January.
    • Handle: RePEc:kap:jrefec:v:50:y:2015:i:1:p:52-73
    DOI: 10.1007/s11146-013-9450-z
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