Dynamic and static asking prices in the Sydney housing market

Khezr, Peyman and Menezes, Flavio M. (2016) Dynamic and static asking prices in the Sydney housing market. Economic Record, 92 297: 209-221. doi:10.1111/1475-4932.12242


Author Khezr, Peyman
Menezes, Flavio M.
Title Dynamic and static asking prices in the Sydney housing market
Journal name Economic Record   Check publisher's open access policy
ISSN 0013-0249
1475-4932
Publication date 2016-01-01
Sub-type Article (original research)
DOI 10.1111/1475-4932.12242
Open Access Status Not Open Access
Volume 92
Issue 297
Start page 209
End page 221
Total pages 13
Place of publication Richmond, VIC, Australia
Publisher Wiley-Blackwell
Language eng
Subject 2002 Economics and Econometrics
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.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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Created: Wed, 20 Jan 2016, 22:50:58 EST by Alys Hohnen on behalf of School of Economics