Description1
“What factors impact the successful selling of a home on the open market?”
Dezmeshea Washington
Logistics: Business Administration Park University
MG 315 Advanced Business Statistics
Professor Mary Farmer
February 5, 2023
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Outline “What factors impact the successful selling of a home on the open market?”
1.
2.
3.
4.
5.
Introduction
Purpose Statement
Definition of Variables
Data Description
References
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INTRODUCTION
The real estate industry plays a critical role in the global economy and is shaped by
numerous factors that can affect its health, viability, and success. According to the National
Association of Realtors (2021), the economy, interest rates, demographic trends, regulation,
and technology are some of the most influential factors that impact the real estate market.
A robust economy, for instance, leads to higher employment rates and greater disposable
income, which results in increased demand for housing and commercial properties.
Conversely, a weakened economy reduces demand and lowers property values (National
Association of Realtors, 2021). The same applies to interest rates, with low rates making
borrowing more affordable and driving up demand and property values, while high rates
have the opposite effect (National Association of Realtors, 2021).
Demographic trends, such as population growth, aging population, and migration
patterns, also have a significant impact on the real estate market. For instance, a growing
population boosts demand for housing, while an aging population may lead to a decrease in
demand for specific types of properties (National Association of Realtors, 2021). Moreover,
government regulations and policies, such as zoning regulations, tax policies, and building
codes, can also affect the supply and demand for real estate, as well as the cost of
ownership (National Association of Realtors, 2021).
Finally, technology has greatly impacted the real estate industry, with the
widespread use of digital platforms and tools making it easier for buyers and sellers to
access information and conduct transactions (National Association of Realtors, 2021).
The purpose of this paper is to find a regression or equation that can predict the number of
days a house is in the marketplace by looking at their price, size, township, and whether the
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house has a pool or not. This would be very beneficial for any real estate agent to know if
the houses they are selling are in a range of days that is normal or if the house is difficult to
sell.
The real estate market is complex and multi-dimensional, with various factors
influencing its health, viability, and success. It is essential for real estate professionals,
investors, and policymakers to have a comprehensive understanding of these factors to
make informed decisions and navigate the market effectively.
PURPOSE STATEMENT
The dependent variable number of days in the marketplace is determined by
independent variables price of the house, size of the house, township, and whether the
house has a pool. The most important independent variable in this relationship is price
because there is a more likely significant relationship between the price of the house and
the number of days the house will be in the market based on my knowledge and different
research.
DEFINITION OF VARIABLES
The relationship between the price of a house and the number of days it remains in
the marketplace is a crucial aspect of the real estate market. Research has shown that there
is a direct correlation between these two factors, with the price of a property and the length
of time it remains on the market being closely intertwined (Rogacz, 2022).
According to a study by the National Association of Realtors (2021), properties that are
priced too high tend to remain on the market for longer periods of time, while properties
that are priced appropriately tend to sell more quickly. The study found that properties
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priced above market value stay on the market for an average of 71 days, while those priced
at market value sell in an average of 46 days (Rogacz 2022). Additionally, the study found
that properties priced below market value sell in an average of 33 days (National
Association of Realtors, 2021). Another study by Zillow (2021) found that the number of
days a property remains on the market is directly related to the price of the property, with
higher-priced homes taking longer to sell than lower-priced homes. This study found that
homes priced in the upper 25% of the market took an average of 78 days to sell, while
homes priced in the lower 25% of the market took an average of 56 days to sell (Zillow,
2021).
The relationship between the location of a house in terms of township and the
number of days it remains in the marketplace is a topic that has received considerable
attention in the real estate industry. It is widely recognized that the location of a house in a
specific township can impact the time it takes to sell the property. A study by Zillow (2021)
found that the township in which a house is located can play a significant role in the
number of days it remains in the marketplace. The study found that houses located in
certain townships had shorter days on market than those located in other townships, with
the fastest-selling homes being in popular and well-established areas (Zillow, 2021).
Similarly, a study by Redfin (2021) found that the location of a house in terms of township
can have a significant impact on the number of days it remains in the marketplace. The
study found that houses located in townships with high demand, strong economic growth,
and desirable amenities tended to sell more quickly than those located in areas with lower
demand and fewer amenities (Redfin, 2021).
The relationship between the location of a house in terms of township and the
number of days it remains in the marketplace is an important issue that can impact the
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success of the real estate marketplace. Research has shown that the location of a house in a
specific township can play a significant role in the time it takes to sell the property, with
houses located in popular and well-established areas typically selling more quickly than
those located in areas with lower demand.
The relationship between whether a house has a pool and the number of days it
remains in the marketplace is a topic that has received significant attention in the real estate
industry. There is a common perception that a house with a pool is more likely to sell
quickly compared to one without a pool. A study by Zillow (2021) found that houses with
pools tend to spend less time on the market compared to those without pools. The study
found that houses with pools were more attractive to potential buyers, as pools are seen as a
valuable amenity that can add value to a property (Zillow, 2021). Similarly, a study by
Redfin (2021) found that houses with pools tend to sell more quickly than those without
pools. The study found that pools can provide a significant boost to a house’s appeal and
increase its marketability, leading to faster sales times (Redfin, 2021).
In conclusion, the relationship between whether a house has a pool and the number
of days it remains in the marketplace is an important issue that can impact the success of
the real estate marketplace. Research has shown that houses with pools tend to spend less
time on the market and are more attractive to potential buyers than those without pools.
The relationship between the size of a house and the number of days it remains in the
marketplace is a topic that has received significant attention in the real estate industry. It is
widely recognized that the size of a house can impact the time it takes to sell the property.
A study by Zillow (2021) found that the size of a house can play a significant role in the
number of days it remains in the marketplace. The study found that larger houses tend to
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spend more time on the market compared to smaller houses, as they are often more
expensive and may be less appealing to some potential buyers (Zillow, 2021).
Similarly, a study by Redfin (2021) found that the size of a house can have a significant
impact on the number of days it remains in the marketplace. The study found that smaller
houses tend to sell more quickly than larger houses, as they are more affordable and
appealing to a wider range of potential buyers (Redfin, 2021).
The relationship between the size of a house and the number of days it remains in
the marketplace is an important issue that can impact the success of the real estate
marketplace. Research has shown that the size of a house can play a significant role in the
time it takes to sell the property, with smaller houses typically selling more quickly than
larger houses.
DATA DESCRIPTION
The variables that are being used in the project are the following: Price, Size, Township,
Pool, and Days. The dataset contains 105 observations of houses in the marketplace.
Price
Size
206424
346150
372360
310622
496100
294086
228810
384420
416120
487494
448800
1820
3010
3210
3330
4510
3440
2630
4470
4040
4380
5280
Township Pool
(yes is
1)
2
4
2
3
4
4
4
2
4
3
4
1
0
0
1
0
1
0
0
0
1
0
Days
33
36
21
26
13
31
39
26
26
32
35
8
388960
335610
276000
346421
453913
376146
694430
251269
547596
214910
188799
459950
264160
393557
478675
384020
313200
274482
167962
175823
226498
316827
189984
366350
416160
308000
294357
337144
299730
445740
410592
667732
523584
336000
202598
326695
321320
246820
546084
793084
4420
2970
2300
2970
3660
3290
5900
2050
4920
1950
1950
4680
2540
3180
4660
4220
3600
2990
1920
1970
2520
3150
1550
3090
4080
3500
2620
2790
2910
4370
4200
5570
5050
3360
2270
2830
2770
2870
5910
6800
2
3
1
3
3
2
3
3
5
4
1
4
1
1
5
4
3
3
5
5
3
4
2
3
4
2
4
3
2
3
1
5
5
3
1
4
4
5
5
4
0
0
0
1
1
1
1
1
1
1
1
1
0
1
1
0
0
1
1
1
1
1
1
1
0
0
1
1
0
0
1
1
1
0
1
1
0
0
1
1
50
25
34
17
12
28
36
38
37
20
52
31
40
54
26
23
31
37
31
28
28
22
22
23
25
37
15
19
31
19
27
29
19
32
28
30
23
27
35
27
9
174528
392554
263160
237120
225750
848420
371956
404538
250090
369978
209292
190032
216720
323417
316210
226054
183920
248400
466560
667212
362710
265440
706596
293700
199448
369533
230121
169000
190291
393584
363792
360960
310877
919480
392904
200928
537900
258120
558342
302720
1600
3970
3060
1900
2150
7190
3110
3290
2810
3830
1630
1850
2520
3220
3070
2090
2090
2300
5760
6110
4370
3160
6600
3300
2330
4230
2030
1690
2040
4660
2860
3840
3180
7670
3400
1840
4890
2390
6160
3440
2
4
3
3
2
1
5
2
5
4
3
4
4
4
1
1
2
2
4
3
1
5
3
4
3
2
2
1
4
3
5
2
1
4
2
4
1
1
3
3
1
1
0
1
1
0
1
1
0
1
1
1
0
1
0
1
0
1
0
1
0
1
1
0
1
1
1
0
1
1
1
0
1
1
1
1
0
0
1
0
39
30
26
14
27
49
29
24
18
27
18
30
2
22
30
28
30
50
42
21
24
22
40
14
25
32
21
20
31
34
48
32
40
30
40
36
23
23
24
38
10
240115
793656
218862
383081
351520
841491
336300
312863
275033
229990
195257
194238
348528
241920
2220
6530
1930
3510
3380
7030
2850
3750
3060
2110
2130
1650
2740
2240
5
4
4
2
2
4
1
4
3
3
5
2
5
5
1
1
1
1
0
1
0
1
1
0
1
1
1
0
39
53
58
27
35
50
28
12
27
37
11
30
27
34
11
REFERENCE PAGE
National Association of Realtors. (2021). Real Estate in a Changing Market. Retrieved from
https://www.nar.realtor/research-and-statistics/research-reports/real-estate-in-achanging-market.
National Association of Realtors. (2021). The Impact of Interest Rates on the Real Estate
Market. Retrieved from https://www.nar.realtor/research-and-statistics/researchreports/the-impact-of-interest-rates-on-the-real-estate-market.
National Association of Realtors. (2021). The Impact of Home Price on Days on Market.
Retrieved from https://www.nar.realtor/research-and-statistics/research-reports/theimpact-of-home-price-on-days-on-market.
Zillow. (2021). The Relationship Between Price and Days on Market. Retrieved from
https://www.zillow.com/research/c-22397/.
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