Market liquidity is an important aspect of housing market developments. The time on market (TOM) of sold properties is frequently used by researchers, practitioners, and policymakers as a market liquidity indicator. Compared to research on house price indices, the literature is very sparse on constructing housing market liquidity indices. This paper proposes a new method to construct constant-quality market liquidity indices based on TOM. The first contribution is that the method improves end-of-sample reliability resulting in fewer revisions. This increases the practical usefulness for business and policy purposes. The second contribution is that the applied structural time series method is designed to work in thin markets. This allows index construction at the local level.

中文翻译：

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当地稳定质量的房地产市场流动性指数

市场流动性是房地产市场发展的一个重要方面。研究人员、从业者和政策制定者经常将已售房产的上市时间 (TOM) 作为市场流动性指标。与房价指数的研究相比，构建住房市场流动性指数的文献非常少。提出一种基于TOM构建恒定质量市场流动性指数的新方法。第一个贡献是该方法提高了样本结束的可靠性，从而减少了修改。这增加了商业和政策目的的实际用途。第二个贡献是所应用的结构时间序列方法被设计用于在交易稀薄的市场中发挥作用。这允许在本地级别构建索引。