This project will study the relationship between the difference of listing - sold price and the number of days the property has being listing on MLS. It will use the default data (Arlington area 83-1) as the project database. The study will focus on 4 situations: 1) Home sellers value their houses too high, the properties will be listing on the market for many days. 2) The houses are overvalued but sold very soon. 3) Home sellers set the price lower than the market value, houses are sold very quickly. 4)Houses are being undervalued and buyer are hesitate about the true value of the properties and make them listing for long time. The study will test if these trends or some them are believable in the area of Arlington. Also, the report will find out what factors have the main effect on the listing days as well as on the price change.
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1 comment:
Do-able but a little tricky. Sale prices and DOM are a function of each other. Some econometricians say that it is not appropriate to use DOM as an independent variable or you need to use special techniques to deal with the issue (such as 2-staged least squares). Topic is valid but this is an issue that you should be aware of.
Also, 90% of the projects will use sale price as the dependent variable but you might consider looking at other dependent variables such as the difference between SP and LP.
Finally, be careful how you define list price. Many times, especially in this market, sellers may drop reduce their list price. The MLS reports a field called "original list" and "list price" (list price was the most recent list price reported before the property sold).
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