Testing for Price Anomalies in Sequential Sales

  • Henry J. MunnekeEmail author
  • Joseph T. L. Ooi
  • C. F. Sirmans
  • Geoffrey K. Turnbull


This paper provides new evidence of sales sequence-real estate price relations in a setting in which consumption risk and completion risk are both minimized and where agglomeration economies do not pertain. The results illustrate that the monotonic declining price “afternoon effect” or rising price from increasing relative demand documented in auction settings do not extend to real estate transactions in open (non-auction) markets. Instead, we find underlying non-monotonic U-shaped and inverted U-shaped sales sequence-price relations for high-rise and mid-rise developments, respectively, when correcting for unit selectivity effects. The results represent price anomalies in that they are evident after removing the effects of previously identified factors associated with sales sequence-price relations.


Afternoon effect Sequential sales Price formation Selectively bias 

JEL Classification

R31 R38 D40 


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  • Henry J. Munneke
    • 1
    Email author
  • Joseph T. L. Ooi
    • 2
  • C. F. Sirmans
    • 3
  • Geoffrey K. Turnbull
    • 4
  1. 1.Department of Ins/LS/REUniversity of GeorgiaAthensUSA
  2. 2.Department of Real EstateNational University of SingaporeSingaporeSingapore
  3. 3.Department of Risk Mgt/Insurance, Real Estate, and Bus. LawFlorida State UniversityTallahasseeUSA
  4. 4.Dr. P. Phillips School of Real EstateUniversity of Central FloridaOrlandoUSA

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