The impact of gains and losses on homeowner decisions

• Main Authors: HONG, Dong, LOH, Roger, WARACHKA, Mitch
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Real Estate; Realization Utility; Disposition Effect; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6247; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7246&context=lkcsb_research
• Institution: Singapore Management University

Using unique data on condominium transactions that allow for accurately-measured capital gains and losses, we examine the impact of these gains and losses on homeowner decisions. Consistent with the disposition effect, owners with a gain have higher sell propensities than those with a loss. Since rea...