My Home's Market Value: An Active Market Pricing Model

Abstract

The current US residential real estate market is recovering although price growth remains stagnant. The non-linear pricing model examined represents a first investigation in the area of a single variable, polynomial correlation model. Using data from Easton, Connecticut demonstrated that when sellers set initial prices outside of a computed 95% confidence interval for similar properties no offers are forthcoming prior to asking price reductions and offered properties remain on the market longer.