Attributes Affecting the Exposure Time of a Residential Property

Abstract

The aim of this paper was to identify the characteristics of a property that affected the time it remained on the market. Selected methods of duration analysis were applied to assess the probability of exiting the system of residential real estate sales offers, taking into account different real estate characteristics. The set of attributes used to describe the properties submitted for sale was analyzed: the usable area of the property, the number of rooms, the standard of the property finish, the year of building construction and the location of the property on the floor (storey). In the study, the authors used the cumulative frequency function and the unity complement of the Kaplan–Meier estimator. The estimators were used to compare the probability of withdrawing a real estate sale offer from the offer database due to: selling the real estate and suspending or withdrawing the offer. The analysis was based on data obtained from the West Pomeranian Association of Real Estate Agents in Szczecin. Residential properties that were entered into the offer exchange system between January 1, 2017 and June 30, 2021 were examined. In the analyzed period, the largest number of flats with an area between 45 and 75 m2, two rooms, in very good technical condition, were submitted (and sold) to the exchange of offers system. The flats were located on the first or second floor in buildings constructed in 1970–1989. However, taking into account the time of sale of the property, the highest probability of exiting the system (selling) were small properties, with an area of 10–30 m2, studios, for major renovation, located in buildings constructed in 1970–1989. The time of sale was not affected by the floor on which the property was located.