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Testing for Price Anomalies in Sequential Sales

Author

Listed:
  • Henry J. Munneke

    (University of Georgia)

  • Joseph T. L. Ooi

    (National University of Singapore)

  • C. F. Sirmans

    (Florida State University)

  • Geoffrey K. Turnbull

    (University of Central Florida)

Abstract

This paper provides new evidence of sales sequence-real estate price relations in a setting in which consumption risk and completion risk are both minimized and where agglomeration economies do not pertain. The results illustrate that the monotonic declining price “afternoon effect” or rising price from increasing relative demand documented in auction settings do not extend to real estate transactions in open (non-auction) markets. Instead, we find underlying non-monotonic U-shaped and inverted U-shaped sales sequence-price relations for high-rise and mid-rise developments, respectively, when correcting for unit selectivity effects. The results represent price anomalies in that they are evident after removing the effects of previously identified factors associated with sales sequence-price relations.

Suggested Citation

  • Henry J. Munneke & Joseph T. L. Ooi & C. F. Sirmans & Geoffrey K. Turnbull, 2019. "Testing for Price Anomalies in Sequential Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 58(4), pages 517-543, May.
    • Handle: RePEc:kap:jrefec:v:58:y:2019:i:4:d:10.1007_s11146-018-9660-5
    DOI: 10.1007/s11146-018-9660-5
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    References listed on IDEAS

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    2. Natalya Bikmetova & Geoffrey K. Turnbull & Velma Zahirovic‐Herbert, 2023. "Ethnicity in housing markets: Buyers, sellers and agents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(1), pages 196-232, January.

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    More about this item

    Keywords

    Afternoon effect; Sequential sales; Price formation; Selectively bias;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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