Does Time-on-Market Measurement Matter?
Justin D. Benefield
William G. Hardin III
Published online: 13 November 2013
Springer Science+Business Media New York 2013
Abstract Time-on-market is one of the most commonly analyzed outcomes in the
residential literature. However, existing research provides no consensus agreement on
the actual definition of “time-on-market” and its calculation. Very little discussion of
the numerous reasonable alternative definitions exists. To address this ambiguity,
alternative definitions and related calculations of time-on-market are assessed. First,
using multiple listing service data from a medium-sized United States city, five
measures of time-on-market are modeled and across-model differences are evaluated.
Second, using multiple listing service data from a large United States city, the impor-
tance of relisted properties in defining and assessing time-on-market is investigated.
Results indicate that both time-on-market definition and the handling of relisted
properties substantially influence model outcomes and the statistical significance of
dependent variables. Results also suggest that much of the existing literature incorpo-
rating time-on-market warrants reevaluation using a consistent definition of marketing
time and an adjustment for relisted properties.
Many studies in the academic real estate literature attempt to model time-on-market as a
function of various property, market, and transaction participant characteristics.
time-on-market and property price are firmly established as the most commonly used
metrics in describing real property transactions and in analyzing impacts associated
J Real Estate Finan Econ (2015) 50:52–73
Time-on-market is an important measure in residential real estate transaction and brokerage studies, such as
Genesove and Mayer (1997), Glower et al. (1998), Knight (2002), Anglin et al. (2003), Rutherford
et al.(2005), Turnbull et al. (2006), and Huang and Rutherford (2007).
J. D. Benefield (*)
Department of Finance, Raymond J. Harbert College of Business, Auburn University,
405 W. Magnolia Ave., Suite 303, Auburn, AL 36849, USA
W. G. Hardin III
Department of Finance and Real Estate, College of Business Administration, Florida International
University, 11200 SW 8th Street, Miami, FL 33199, USA