EQUITY AND TIME TO SALE IN THE REAL-ESTATE MARKET

Evidence from the Boston condominium market of the early 1990's reveal s that an owner's equity position determines his experience as a selle r. An owner of a property with a high loan-to-value ratio sets a highe r asking price, has a higher expected time on the market and, if he se lls, receives a higher price than an owner with proportionately less d ebt. The down payment requirement for purchasers, but not incumbent ow ners, provides a simple explanation for this phenomenon among owner-oc cupants. The results provide supporting evidence for equity-based aggr egate theories of price-volume movements in the housing market. (JEL R 31, D83)