Market buoyancy, information transparency and pricing strategy in the Scottish housing market

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    Abstract

    In housing markets, there is a trade-off between selling time and selling price with pricing strategy being the balancing act between the two. Motivated by the Home Report scheme in Scotland, this paper investigates the role of information symmetry played in such a trade-off. Empirically, this study tests if sellers’ pricing strategy change when more information becomes available and whether this, in turn, affects the trade-off between the selling price and selling time. Using housing transaction data of North-East Scotland between 1998Q2 and 2018Q2, the findings show that asking price has converged to the predicted price of the property since the introduction of the Home Report. While information transparency reduces the effect of “overpricing” on selling time, there is little evidence to show that it reduces the impact of pricing strategy on the final selling price in the sealed-bid context.
    Original languageEnglish
    Pages (from-to)3388-3406
    Number of pages19
    JournalUrban Studies
    Volume58
    Issue number16
    Early online date18 Feb 2021
    DOIs
    Publication statusPublished - 1 Dec 2021

    Keywords

    • built environment
    • economic processes
    • housing market
    • information transparency
    • pricing strategy

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