SEQUENTIAL SALES OF SIMILAR ASSETS: THE LAW OF ONE PRICE AND REAL ESTATE |
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| Authors: | Henry Munneke Joseph TL Ooi CF Sirmans Geoffrey K Turnbull |
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| Institution: | 1. Terry College of Business, University of Georgia, 206 Brooks Hall, Athens, GA 30602.E‐mail: hmunneke@terry.uga.edu;2. Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore 117566. E‐mail: rstooitl@nus.edu.sg;3. College of Business, Florida State University, 821 Academic Way, P.O. Box 3261110, Tallahassee, FL 32306‐1110. E‐mail: cfsirmans@cob.fsu.edu;4. Department of Economics, Georgia State University, P.O. Box 3992, Atlanta, GA 30302‐3992. E‐mail: gturnbull@gsu.edu |
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| Abstract: | 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. |
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