Do large gains make willing sellers?

• Main Authors: HONG, Dong, LOH, Roger, WARACHKA, Mitch
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Real Estate; Sell Propensity; Capital Gains; Realization Utility; Disposition Effect; Asian Studies; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5234; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6233/viewcontent/do_large_gains_make_willing_sellers.pdf
• Institution: Singapore Management University

Using unique real estate data that allow for accurately-measured capital gains, we examine whether sell propensities depend on the magnitude of a seller's capital gain. We find that short-term sell propensities are flat over losses and increasing in gains. Consistent with their higher sell prop...