Open AccessInternational Real Estate Review
Author(s) -
Steven Stelk,
Leonard V. Zumpano
Publication year - 2017
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100235
Subject(s) - boom , real estate , bust , market segmentation , business , monetary economics , residential real estate , real estate investment trust , capitalization rate , home market , economics , financial economics , finance , marketing , market economy , environmental engineering , engineering
This study investigates the impact of the brokerage market on home prices in both a seller's market (2006) and a buyer's market (2009). In both years, homes sold with brokerage assistance realized higher prices when compared with homes sold without the aid of a broker, even after controlling for selection bias in the seller¡¦s choice to use a broker. This is the first study that uses a national dataset from extreme boom and bust markets that has documented evidence of price segmentation in the residential real estate market. The findings may be the result of the market conditions in 2006 and 2009.