Chinloy, Peter; Wu, Zhonghua - In: The Journal of Real Estate Finance and Economics 46 (2013) 3, pp. 397-423
The firm’s inventory-sales ratio prices exposure to the housing cycle with a predictable sign. The buyer of a new home holds a pre-construction contract at a guaranteed price with the right to cancel at any date up to delivery. The demand for contracts rises with falling user costs while lot...