Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Essays on Foreclosures and Housing Debt
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of four self-contained essays in the field of real estate economics, and specifically, the market for single-family homes. The first three essays examine sales of foreclosed properties, while essay four is on the conversion process of rental apartments to owner-occupied units in the co-operative form. These topics have a common denominator in the analysis of real estate markets and a link to debt financing. The effect of a foreclosure on price is examined through several methods. In the first essay, a spatial hedonic model is applied on transaction data. In the second essay, the impact on holding-period returns and the rate-of-turnover is estimated through propensity-score matching. Hedonic regressions and appraisal data is used in the third essay, which analyzes the determinants of the price impact caused by a forced sale. The impact of local market conditions is tested and a discount on price is related to the search process among market participants.

The second topic of conversions is addressed in essay four, which focuses on an informational asymmetry between tenants involved in the conversion process and other market participants. An incentive to mismanage housing co-operatives financially is examined through hedonic models applied to apartment transaction data. 

Abstract [sv]

Denna avhandling består av fyra självständiga uppsatser inom området fastighetsekonomi, och mer specifikt marknaden för ägda bostäder. De tre första uppsatserna undersöker exekutiva försäljningar av bostäder medan uppsats fyra undersöker processen att ombilda hyresrätter till bostadsrätter. Dessa två teman har gemensamt att fastighetsmarknaden och relationen mellan fastigheter och skuldfinansiering analyseras. Effekten på pris som orsakas av en exekutiv försäljning undersöks med flera metoder. I uppsats ett tillämpas en spatial hedonisk modell på transaktionsdata. I den andra uppsatsen undersöks den påverkan som en exekutiv försäljning har på omsättningshastighet och avkastning genom propensity-score matchning. Hedoniska modeller och data med uppskattade värden används i uppsats tre, som undersöker faktorer som påverkar den priseffekt som orsakas av en exekutiv försäljning. Påverkan av lokala marknadsförhållanden testas, och en rabatt relateras till sökprocessen hos köpare och säljare.

Det andra temat i denna avhandling behandlas i uppsats fyra som har fokus på en informationsasymmetri mellan de hyresgäster som är inblandade i ombildningsprocessen från hyreslägenheter till bostadsrätter, och andra marknadsaktörer. Ett incitament för att missköta bostadsrättsföreningens ekonomi undersöks genom hedoniska modeller som tillämpas på transaktionsdata. 

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. , p. 39
Series
TRITA-ABE-DLT ; 187
Keywords [en]
Real Estate Economics, Housing, Foreclosure, Mortgage, Hedonic Modeling, Propensity-Score Matching, Informational Asymmetries, Matching Theory
National Category
Economics and Business
Research subject
Real Estate and Construction Management; Economics; Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-225158ISBN: 978-91-7729-735-2 (print)OAI: oai:DiVA.org:kth-225158DiVA, id: diva2:1194392
Public defence
2018-05-04, L1, Drottning Kristinas väg 30, Stockholm, 13:00 (English)
Opponent
Supervisors
Funder
VINNOVA
Note

QC 20180403

Available from: 2018-04-03 Created: 2018-04-02 Last updated: 2018-05-15Bibliographically approved
List of papers
1. Forced sales and their impact on real estate prices
Open this publication in new window or tab >>Forced sales and their impact on real estate prices
2016 (English)In: Journal of Housing Economics, ISSN 1051-1377, E-ISSN 1096-0791, Vol. 34, p. 60-68Article in journal (Refereed) Published
Abstract [en]

Based on data of sold apartments and single-family houses in Stockholm, Sweden, during the period of 2006 through 2013, we find that forced sales of apartments and single-family houses cause a substantial price discount. The results of a hedonic spatial Durbin model show a negative impact on transaction price of 20.1% for foreclosed apartments and 24.6% for foreclosed single-family houses. Furthermore, the price discount increases when the number of attempted auctions is limited, which is the case for forced apartment sales owing to a lost membership in a housing association (forfeited). In those cases, the discount is as high as 29.1%.

Place, publisher, year, edition, pages
Elsevier, 2016
Keywords
Foreclosure, Housing, Mortgage, Spatial Durbin model
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-195198 (URN)10.1016/j.jhe.2016.08.002 (DOI)000388912100005 ()2-s2.0-84984614250 (Scopus ID)
Note

QC 20161129

Available from: 2016-11-29 Created: 2016-11-02 Last updated: 2018-04-02Bibliographically approved
2. Foreclosures, Returns, and Buyer Intentions
Open this publication in new window or tab >>Foreclosures, Returns, and Buyer Intentions
2017 (English)In: Journal of Real Estate Research, ISSN 0896-5803, Vol. 39, no 2, p. 189-213Article in journal (Refereed) Published
Abstract [en]

Using data from Stockholm, Sweden, I examine whether foreclosed properties are sold at a discount. This institutional setting differs from the United States and studies of real estate owned properties. The findings show that properties experience an eight times higher turnover subsequent to a foreclosure Compared with the general market, indicating that professional buyers are taking advantage of a discount. That a substantial fraction of buyers are found to have bought more than one foreclosed property provides further support towards such a pattern. Holding period returns prior and subsequent to a foreclosure also supports a price discount.

Place, publisher, year, edition, pages
AMER REAL ESTATE SOC, 2017
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-210944 (URN)000403523500002 ()
Note

QC 20170714

Available from: 2017-07-14 Created: 2017-07-14 Last updated: 2018-04-02Bibliographically approved
3. Determinants of a Foreclosure Discount
Open this publication in new window or tab >>Determinants of a Foreclosure Discount
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Using a dataset with individual appraisals of foreclosed apartments sold through auction in Stockholm, Sweden, the issue of selection bias and a potential overestimation of a foreclosure related discount on price is addressed. A mean discount of 7.9% with a corresponding median value of 9.5% is shown. A hedonic model is also applied. It is found that about half of the impact on price caused by a forced sale is attributable to the search process on the real estate market. These results contrasts from earlier research having explained a negative impact on price to seller motivational factors. These results provide insight towards the dynamics of a negative impact on price caused by a forced sale, and has the potential to allow stakeholders to model a potential discount in greater detail for individual foreclosed properties, and contribute to management of credit risk. 

National Category
Economics
Identifiers
urn:nbn:se:kth:diva-215687 (URN)
Note

QC 20171017

Available from: 2017-10-12 Created: 2017-10-12 Last updated: 2018-04-03Bibliographically approved
4. Housing Tenure and Informational Asymmetries
Open this publication in new window or tab >>Housing Tenure and Informational Asymmetries
(English)In: Journal of Real Estate Research, ISSN 0896-5803Article in journal (Refereed) Accepted
Abstract [en]

The paradigm shift of focus from rental apartments to owner occupied units on the Swedish property market has led to a substantial number of rental apartments being converted to cooperative apartments. Such conversions are typically done at prices below market value. This provides a setting with strong financial incentives for tenants involved in such a conversion to take advantage of their informational advantage regarding the financial management of a cooperative, compared to less informed neighbors and buyers on the general market. This setting also provides a reliable way of estimating the persistence and effects of such an informational asymmetry through nearly 200,000 apartment transactions in Stockholm, Sweden, during the period of 2005 through mid-2014. We find evidence supporting that insiders take advantage of an informational asymmetry; as newly formed cooperatives set monthly fees artificially low in order to increase the probability of a conversion as well as apartment values. However, market participants seem to discount this informational asymmetry as recently converted apartments sell at lower prices.

National Category
Economics
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-211517 (URN)
Note

QCR 20170814

Available from: 2017-08-04 Created: 2017-08-04 Last updated: 2018-04-02Bibliographically approved

Open Access in DiVA

fulltext(372 kB)166 downloads
File information
File name FULLTEXT01.pdfFile size 372 kBChecksum SHA-512
f88aa0cb6227990ced5b920a0108ddf6fafad8e9d247bba6448877a53ae64752091dc6d97364f8858b3c4d818295044a259531efcc826261bfce14e6fbe49465
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Donner, Herman
By organisation
Building and Real Estate Economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 166 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 354 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf