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- Title
Dynamic and Static Asking Prices in the Sydney Housing Market.
- Authors
Khezr, Peyman; Menezes, Flavio M.
- Abstract
This paper investigates the impact of two commonly used asking price strategies on house sales prices. In particular, we compare a dynamic asking price, where the seller adjusts her asking price over time as she fails to sell her property, with a static asking price, where the seller sets an asking price and sticks to it until the property is sold. While we show this comparison to be ambiguous from a theoretical perspective, our empirical study, using a comprehensive dataset of the properties sold in the greater Sydney region in 2011, indicates that properties with a dynamic asking price sold, on average, for approximately 1.9 per cent less than properties with a static asking price. In addition, we show that, controlling for the asking price strategy, the duration of sale has a significant impact on sales prices.
- Subjects
ASKED price; HOUSING market; HOME sales; REAL property sales &; prices; SELLING
- Publication
Economic Record, 2016, Vol 92, Issue 297, p209
- ISSN
0013-0249
- Publication type
Article
- DOI
10.1111/1475-4932.12242