List price and sales prices of residential properties during booms and busts

► We model how the ratio of list prices to sale prices varies over the housing cycle. ► We argue that the standard housing search model is not applicable during housing booms. ► We expand search models to allow for unexpected price changes and changes in sellers' behavior. ► We find sellers change their search process to an auction-like behavior during housing booms. ► We find evidence that during busts sellers' list prices are sticky.