Analysis of the Difference Between Asking Price and Selling Price in the Housing Market

Abstract

In Italy, the opacity of the real estate market, which often does not reveal the real consistency of selling prices, or, in relation to the phase of the economic cycle, the low number of transactions force appraisers to use asking prices as comparables in the market approach. The international literature recognizes the importance of analyzing the relationship between asking prices and selling prices or time on market for the interpretation of the real estate market. In this work, the analysis of the difference is aimed at interpreting its variance by identifying the variables that have greater weight. For this purpose, a multivariate analysis model is built on a sample of data over a 12 years interval recorded in the housing market of the city of Potenza, Italy.