Journal Article

Real estate liquidity

Abstract: Residential real estate markets often go through \"hot\" and \"cold\" periods. A hot market is one where prices are rising, liquidity is good in that average selling times are short, and the volume of transactions is higher than the norm. Cold markets have just the opposite characteristics - prices are falling, liquidity is poor, and volume is low. In this paper I show how liquidity depends on the value of the housing service flow, which in turn reflects the aggregate state of the economy. I use data from the San Francisco Bay Area to investigate the relationship between marketing times and state variables such as the interest rate and job growth.

Keywords: Real property; Liquidity (Economics);

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Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: Economic Review

Publication Date: 1999

Pages: 14-26

Order Number: 3