Asking prices vs. Market Prices:An Empirical Analysis

The issue of transparency in the Italian real estate market means that many analyses should be carried out by utilizing asking prices which should also be used by the industry for estimative purposes. Despite the fact that the importance of asking prices for the interpretation of the market is also recognized in the international literature, it might be worthwhile to delve into their relationship with final transaction prices. To this end, this paper proposes a methodology for analyzing whether and to what extent asking prices can be considered a proxy for market prices. Particular focus will be dedicated to verifying whether the variability of asking prices can be considered a reference for the analysis of the variability of the real estate market. The model will be tested empirically on a case study referring to the real estate market in the city of Turin and its component geographic submarkets.

Rocco Curto, Elena Fregonara, Patrizia Semeraro

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