Housing Price Dispersion: An Empirical Investigation

Posted: 6 Nov 2005

See all articles by Charles Ka Yui Leung

Charles Ka Yui Leung

The Chinese University of Hong Kong (CUHK) - Department of Economics

Chun Fai Youngman Leong

The Chinese University of Hong Kong

Siu-Kee Wong

Nankai University - International Economics & Trade

Abstract

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.

Keywords: Price dispersion, search models, macroeconomic factor, time aggregation

Suggested Citation

Leung, Ka Yui Charles and Leong, Chun Fai Youngman and Wong, Siu-Kee, Housing Price Dispersion: An Empirical Investigation. Journal of Real Estate Finance and Economics, Vol. 32, No. 3, 2006. Available at SSRN: https://ssrn.com/abstract=833385

Ka Yui Charles Leung (Contact Author)

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong
+852-2609-7158 (Phone)
+852-2603-5805 (Fax)

HOME PAGE: http://www.cuhk.edu.hk/eco/staff/kyleung

Chun Fai Youngman Leong

The Chinese University of Hong Kong ( email )

Hong Kong
Hong Kong

Siu-Kee Wong

Nankai University - International Economics & Trade ( email )

Tianjin, 300071
China

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