“…In the housing market literature, examples of market liquidity include the rate of sale (Hort 2000, Genesove and Mayer 2001, De Wit, Englund and Francke 2013, (seller) time on market (Kang and Gardner 1989, Jud, Seaks and Winkler 1996, Glower, Haurin and Hendershott 1998 and the number of transactions (Wu and Brynjolfsson 2014). An example of funding liquidity is the ease with which a mortgage can be obtained (i.e., credit constraints, see Mian and Sufi 2009, Duca, Muellbauer and Murphy 2011, Francke, Van de Minne and Verbruggen 2014. In this article, we are interested in market liquidity and we employ the rate of sale as our measure.…”