IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v53y2025i6p1284-1308.html

Some like it hot: The effect of auction temperature on urban real estate prices

Author

Listed:
  • Randi Hammervold
  • Jon Olaf Olaussen
  • Are Oust
  • Dag Einar Sommervoll
  • Ole Jakob Sønstebø

Abstract

This study analyzes the impact of “auction temperature” – factors such as bid quantity, bidder count, and bid timing – on housing market transaction prices, utilizing a dataset of 15,288 Norwegian housing transactions from 2013 to 2019. Employing structural equation modeling, we demonstrate that auction temperature significantly influences final selling prices. Our findings indicate that strategic underpricing by sellers increases auction temperature but ultimately lowers the selling price. Conversely, for buyers, a high opening bid reduces auction temperature but increases the price. This research provides new insights into auction dynamics in real estate, assisting buyers and sellers in navigating these complex transactions.

Suggested Citation

  • Randi Hammervold & Jon Olaf Olaussen & Are Oust & Dag Einar Sommervoll & Ole Jakob Sønstebø, 2025. "Some like it hot: The effect of auction temperature on urban real estate prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 53(6), pages 1284-1308, November.
    • Handle: RePEc:bla:reesec:v:53:y:2025:i:6:p:1284-1308
    DOI: 10.1111/1540-6229.70004
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.70004
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.70004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:53:y:2025:i:6:p:1284-1308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.