Housing prices and the optimal time-on-the-market decision

Hazer Inaltekin, Robert A. Jarrow*, Mehmet Saĝlam, Yildiray Yildirim

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


This paper provides a model for housing prices based on a seller solving the optimal time-on-the market problem. Given the seller's optimal time-on-the market, analytical expressions are provided for both the expected time-on-the-market and the sales price. These expressions facilitate the computation of comparative statics. Consistent with economic intuition, we show that (i) both the expected time-on-the market and sales price decrease as interest rates increase, (ii) the expected time-on-the market increases and the expected sales price decreases as offer activity declines, and (iii) the expected time-on-the market and expected sales price both increase as the list price increases.

Original languageEnglish
Pages (from-to)171-179
Number of pages9
JournalFinance Research Letters
Issue number4
Publication statusPublished - Dec 2011
Externally publishedYes


  • Real estate
  • Sale price
  • Time-on-the-market
  • Optimal waiting time


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