Money Illusion and Residential Real Estate Transfers
This paper reports the results of a study of single-family, detached home transfers, conducted to determine if rational expectations holds as a function of owner-tenure. A counter-rational expectations notion, which has intuitive appeal, is that sellers with relatively long owner-tenure may be more willing to accept "low" offers compared to sellers with short owner-tenure. The study supports this notion. Owner-tenure is found to be significantly related to the real profit realized by sellers. This implies that rational expectations does not hold as a function of owner-tenure and that owner-tenure is a relevant factor for buyers to consider in formulating a purchase offer.
Volume (Year): 4 (1989)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323|
Web page: http://www.aresnet.org/
|Order Information:|| Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323|
Web: http://pages.jh.edu/jrer/about/get.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Colwell, Peter F & Guntermann, Karl L & Sirmans, C F, 1979. "Discount Points and Housing Prices: Comment," Journal of Finance, American Finance Association, vol. 34(4), pages 1049-54, September.
- Jacob Belkin & Donald J. Hempel & Dennis W. McLeavey, 1976. "An Empirical Study of Time on Market Using Multidimensional Segmentation of Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 4(2), pages 57-75.
- Echols, Michael E & Elliott, Jan Walter, 1976. "Rational Expectations in a Disequilibrium Model of the Term Structure," American Economic Review, American Economic Association, vol. 66(1), pages 28-44, March.
When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:4:n:1:1989:p:13-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.