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THE ASKING PRICE DEVELOPMENT TO THE MARKET PRICE AND MARKETING TIME ON REAL ESTATE MARKET SEGMENTS
Abstract
Real estate markets show specifics across the particular segments of real estate and also different performance in terms of market efficiency in real time. Moreover each country has some legal framework and other specifics. The paper deals with monitoring of asking price development till realizing a market transaction as the indicator of the market efficiency. Such microeconomics research should determine both the price differences and the duration to sell for individual observation of selected market and segment. The research comprises two real estate market segments in the Czech Republic: family houses and agricultural lands. The data was collected from March to December of 2017 and updated once a week to determine duration of offering, asking price and market price. During the time period 1,807 family houses and 1,638 agricultural lands on offer were monitored on the real estate market and of which 420 family houses and 608 agricultural lands were identified in the Land Register database. Particular transactions with details were provided by the Land Register. Complete observations from asking time till sale were statistically processed. Results were described in terms of market efficiency on a microeconomic basis and also as an application on sales comparison approach of valuation.
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References13
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