Resale Housing Market Research Articles

Gender, Stress, and Job Performance: Agents in the Resale Housing Market

Gender, Stress, and Job Performance: Agents in the Resale Housing Market

Correction to: Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market

Correction to: Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market

Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market

This paper uses a search model with Nash bargaining to identify various channels through which agent gender affects selling price and selling time in the resale market for houses. The theory is used in conjunction with the empirical model to infer agent bargaining power when dealing with the same or opposite sex agents on the other side of the transaction. The results reveal that sellers set higher listing prices when working with male agents, a pattern consistent with sellers’ ex ante beliefs that male agents enjoy greater expected bargaining power. Ex post agent bargaining power varies by sex and their role in the transaction. Female agents assisting buyers have stronger bargaining power when facing male listing agents than when facing female agents in rising or falling markets. The ex post bargaining power of male selling agents assisting buyers appears to be generally weaker than that of female listing agents.

Real estate bubbles and contagion: new empirical evidence from Canada

This paper investigates the presence of bubbles in the new housing market and resale housing market of four Canadian census metropolitan areas (CMAs): Vancouver, Toronto, Victoria and Hamilton, and whether the bubbles are contagious. The GSADF test developed by Phillips, Shi, and Yu (2015) is applied on a monthly price-to-rent ratio from January 1988 to December 2018 to date-stamp episodes of bubbles in these markets. Our results suggest that among the four CMAs, only the resale housing market of Victoria was exuberant, while for the new housing market, both Victoria and Vancouver experienced exuberance. Subsequently, using a non-parametric model with time-varying coefficients performed by Greenaway-McGrevy and Phillips (2016), we find the evidence of bubbles migration from the new housing and resale housing markets within and between these CMAs.

Within‐City Spatial Distribution, Heterogeneity and Diffusion of House Price: Evidence from a Spatiotemporal Index for Beijing

AbstractWithin‐city house prices can be a very complicated system, in which the local prices may significantly differ in both levels and changes and diffuse across locations. These issues are essential for understanding and interpreting the dynamics of city‐level housing markets. In this study, we construct a constant‐quality spatiotemporal price index for Beijing's resale housing market between 2011 and 2015, which serves as a common basis for our multi‐perspective and comprehensive analysis on within‐city house price patterns. As suggested by the spatial distribution and local structures, the local price levels are not homogeneous or fully amenable to a simple structure. The local price changes, likewise, are not synchronized in terms of either price trend or structural breakpoint. However, the within‐city house prices still display clear patterns. The local price levels, trends and breakpoints can be partially explained by local amenities or socioeconomic factors and the local price changes diffuse between neighboring areas. These findings deliver deep insights into within‐city housing markets and have important implications for urban planning and housing investment.

Within-City House Price Distribution, Heterogeneity and Diffusion: Evidence from a Spatiotemporal Index for Beijing

Understanding the within-city house price distribution, heterogeneity and diffusion is essential for understanding the dynamics of city-level housing markets, but these issues have not been thoroughly investigated. In this paper, we construct a constant-quality spatiotemporal house price index for Beijing’s resale housing market between 2011 and 2015, and use this index to examine the within-city house price patterns in this superstar city. The revealed spatial distribution of local house price levels shows plausible structures and evolution. Additionally, local house price changes show significant heterogeneity in terms of both price trends and structural breakpoints. We also find that local house price changes diffuse into neighboring areas. These findings deliver deep insights into within-city housing markets and have important implications for urban planning and housing investment.

An agent-based model for investigating the impact of distorted supply–demand information on China's resale housing market

Trading participators suffer from information disadvantage in China's resale housing market, where brokers are able to distort supply–demand information and thus mislead their clients in price negotiation. In this paper, we propose an agent-based resale model to examine how brokers’ distorted market information affects the market performances. Experimental results show that brokers are truly able to influence market trade count, resale price per size, and the benefits and costs of buyers and sellers. We find that no matter what the actual market condition is, assisting sellers is always the dominating policy for rational brokers. We also find that both buyers and sellers are likely to gain more surplus from transactions if they sign an “Exclusive Right To Buy/Sell” agreement with the broker, but the sellers are less bothered by the increased trade time. Coupled with these findings, managerial implications are discussed for China's resale housing market.

東京大都市圏郊外の中古住宅市場における需給バランス

東京大都市圏郊外の中古住宅市場における需給バランス

An Experimental Comparison of Commission Patterns in the Resale Housing Market in China

AbstractUsing economical experiments, this study comparatively examines the effects of fixed-percentage commission pattern and flat-fee pattern on the brokers' behaviour and the brokerage results. To study the trading process of resale housing and the characters of broker services in the actual housing market, two groups of experiments were designed and implemented in lab. The findings conclude that compared with the flat-fee pattern, the broker's efforts are less, the service duration is shorter and the effectiveness of brokerage is worse when the fixed-percentage commission pattern is used. Considering the conclusions and the prevalent fixed-percentage commission pattern in the real market, this study suggests the application of flat-fee pattern should be encouraged and supported. The study enriches the research methods in the field of real estate and expands the application scope of experimental economic tools.

Adverse selection versus hold up: Tenure choice, tenancy protection and equilibrium in housing markets

In this paper, we consider the tenure choice problem under different schemes of legal tenancy protection. We analyze the interaction between the rental and resale housing markets under conditions of bilateral asymmetric information regarding housing quality and the type of residents. Home ownership is associated with a trade-off between the loss caused by asymmetric information and rent exploitation by landlords in a holdup problem. With perfect protection for tenants, adverse selection in the resale housing market becomes problematic, and the market disappears. Conversely, the absence of tenancy protection mitigates adverse selection in the resale housing market and leads to a separating equilibrium.

Agent-Based Simulation of the Search Behavior in China's Resale Housing Market: Evidence from Beijing

In the paradigm of the search theory, we established the search model applicable to the characteristics of China's resale housing market, by modeling the search behavior for buyer and seller, respectively. Setting the parameters based on the Beijing housing market survey in August 2012, we implemented agent-based simulation to study the dynamics of the search behavior measured by search intensity and search time. Sensitivity test was also used to analyze the determinants of the search behavior for trading agents. The simulation results validate the idiosyncratic feature of the agent's search behavior, which is consistent with theoretical analysis. The increase of matching efficiency promotes the agents' search intensities, but the higher unit search cost can reduce the agents' search intensities. The buyer's search behavior is more sensitive to the change in the market tightness ratio. Brokerage service lowers the transaction price and lessens the agents' search intensities. Sensitivity test further reveals that, the matching efficiency and the market tightness ratio play very important role in improving housing market liquidity. The changes in the search cost and the broker commission rate can reduce the agents' search intensities significantly and there are critical turning points at which the abrupt change occurs.

Multi-agent simulation of the dynamic evolutionary process in Chinese urban housing market based on the GIS: The case of Beijing

Abstract In order to analyze the dynamic evolutionary process of Chinese emerging housing market, the paper defines the behavioral functions of household agents in terms of demand generation, information search and price negotiation, and incorporates multi-agent technique and geographic information system to conduct a series of simulation studies on Beijing housing market. By setting different market scenarios, the impacts of new housing supply and information level on Beijing housing market are addressed. The findings show that, Beijing housing market is characterized by the prominent urban expansion with the formation of consolidated residential zones outside the 5th ring road; the growth in new housing supply can reduce the buyer search duration significantly, and lead the buyer search flow to the new housing market; higher information level can increase the sales of resale housing market, but inhibit the sales and time on market for new-built houses to some extent.

Can the Resale Housing Market Be Split to Facilitate Long-Term Affordability?

This paper argues that a comprehensive affordable housing policy requires the formal splitting of the homeownership market into (at least) two distinct segments: one designated for the general public and following a conventional market pricing mechanism, and the other designated for eligible households and controlling both initial supply and subsequent sales of housing units through regulated affordability-oriented pricing mechanisms. To facilitate the systematic design of an affordable housing segment that remains intact upon household turnover, the paper introduces two alternative cap-on-resale mechanisms: “Mixed Indexed Cap” (MIC) and “Pure Indexed Cap” (PIC). It explains how such models could promote long-term social mobility, allowing multiple low- and modest-income households to engage in capital building by sequentially enjoying increments of appreciation of properties in the affordable housing segment.

不動産流通の課題と展望

不動産流通の課題と展望

Resale Externality and the Used Housing Market

The selling prices of used houses may not fully reflect the maintenance spending of current owners when prospective buyers are unable to conduct a thorough inspection before purchase. This article investigates how this resale externality problem affects the maintenance expenditures of homeowners. After considering both observable and unobservable repair expenses, the analysis shows that the resale externality reduces not only maintenance expenditures, but also household mobility. A treatment effects model is used to estimate the simultaneous relationship between mobility and maintenance in the Japanese resale housing market. The results indicate that the resale externality has a significant negative impact on maintenance expenditures.

中古住宅物件流通における消費者保護

中古住宅物件流通における消費者保護

The Macro Impacts of Public Resold Dwellings on Private Housing Prices in Singapore

In Singapore, the public resale housing market is an actively traded public owner occupier housing market succeeding to the heavily regulated new public owner occupier housing sector, in which the new public housing units are sold at a heavily subsidized price. The resale market was originally aimed at facilitating consumer housing choices and harnessing the greater efficiency of market mechanism in the delivery of public housing. However, it also became a vehicle for many Singaporeans to upgrade to private housing. This raises the concerns of its impacts on the private housing market as well as the equitable distribution of public resources. This paper first analytically reviews the retrospect of Singapore housing system, then empirically studies the impacts of public resold dwellings on the private housing prices, probing the links between the public resale market and the private housing market as well as the implications on the equitable distribution of public resources.

International Real Estate Review

In Singapore, the public resale housing market is an active second-hand housing market, whereby previously subsidised new public housing units were being transacted at market prices. In contrast to the private housing price determinants that have been identified in the international literature, the prices of public resale housing in Singapore are largely determined by public policies rather than by economic variables. This paper provides some empirical evidence on how and to what degree public housing policies affected the price dynamics of public resale housing in Singapore during the 1990s. The findings have additional implications of the wider consequences of public policies on the prices of private housing units.

Monitoring Price Behaviour in the Resale Housing Market: A Note on Measurement and Implications for Policy

The authors compare their constant-quality index of house prices in Toronto for the period 1974-89 with the standard Multiple Listing Service (MLS) index, which has widely acknowledged limitations. The short-run signals regarding price movements often diverge, and the MLS index suggests a more rapid rate of price escalation. They review the importance of accurate measures of resale prices to the formulation of housing policy, and to the related issue of whether the housing market is efficient.

The Resale Housing Market

This paper describes and analyzes the structure and operation of the market for existing single‐family homes. The paper develops aggregative models of sales and renovation activity based on the adjustment choice decisions of households to alter their housing consumption by moving or by undertaking renovations. The models demonstrate that housing resales and renovation expenditures occur when the present value of the gains associated with a housing adjustment exceeds the costs of the transaction. The choice of the adjustment mode is shown to be significantly influenced by the relative transactions costs of moving versus renovating.