Time on the market and price change: the case of Sydney housing market

This article is an empirical study of characteristics related to residential properties sold in Sydney, Australia. We use comprehensive data on the Sydney housing market composed of 25 489 observations for properties sold in the Sydney region in 2011. We consider the fact that both the seller of the property and the real estate agent have a common goal: to sell the property at the highest possible price in the shortest amount of time. The analysis is divided into two major parts. First, we estimate a two-stage least square model to analyse which parameters affect time on the market for a property. Second, we propose a probit model that estimates the parameters that affect a revision in list prices. The results contribute to the existing literature on the Australian housing market by extending understandings about the parameters that could affect the time on the market of properties and the revision of their list prices.