Sequential Sales of Similar Assets: The Law of One Price and Real Estate

16 Pages Posted: 25 Apr 2011

See all articles by Henry J. Munneke

Henry J. Munneke

University of Georgia - Department of Insurance, Legal Studies, Real Estate

Joseph T. L. Ooi

National University of Singapore (NUS) - Department of Real Estate

C.F. Sirmans

affiliation not provided to SSRN

Geoffrey K. Turnbull

Georgia State University - Department of Economics

Abstract

The housing literature largely overlooks the price evolution of similar assets sold sequentially, even though such sales often occur with new residential developments. The law of one price implies no persistent price pattern for identical assets sold sequentially. Nonetheless, the auction and nonauction literatures reveal conditions leading to sales sequence effects on prices. This paper examines price evolution in the condominium market where similar units are sold sequentially in a setting with minimal consumption risk. The results indicate no pervasive sequence-price relationship for sequential sales of similar property units.

Suggested Citation

Munneke, Henry J. and Ooi, Joseph T. L. and Sirmans, C.F. and Turnbull, Geoffrey K., Sequential Sales of Similar Assets: The Law of One Price and Real Estate. Journal of Regional Science, Vol. 51, No. 2, pp. 355-370, 2011, Available at SSRN: https://ssrn.com/abstract=1818637 or http://dx.doi.org/10.1111/j.1467-9787.2010.00691.x

Henry J. Munneke (Contact Author)

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6254
United States
(706) 542-0496 (Phone)
(706) 542-4295 (Fax)

Joseph T. L. Ooi

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

C.F. Sirmans

affiliation not provided to SSRN

No Address Available

Geoffrey K. Turnbull

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-0419 (Phone)
404-651-2737 (Fax)

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