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Housing Price Dispersion: An Empirical Investigation

  • Charles Leung

    ()

  • Youngman Leong
  • Siu Wong

    ()

The efficiency of a market is challenged when price dispersion occurs. Previous studies focused on non-durable consumption goods. This study extends the analysis to the case of residential property, whose transactions are dominated by a second-hand market with many potential buyers and sellers. We demonstrate that housing price dispersion exists, and the degree of dispersion changes systematically with some macroeconomic factors, though the second and the third moment of the price distribution react differently to the macroeconomic variables. Some directions for future research are suggested. Copyright Springer Science + Business Media, Inc. 2006

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File URL: http://hdl.handle.net/10.1007/s11146-006-6806-7
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Article provided by Springer in its journal The Journal of Real Estate Finance and Economics.

Volume (Year): 32 (2006)
Issue (Month): 3 (May)
Pages: 357-385

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Handle: RePEc:kap:jrefec:v:32:y:2006:i:3:p:357-385
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102945

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