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, 60-68 p.Article in journal (Refereed) Published
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. Vol. 34, 60-68 p.
Foreclosure, Housing, Mortgage, Spatial Durbin model
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-195198DOI: 10.1016/j.jhe.2016.08.002ISI: 000388912100005ScopusID: 2-s2.0-84984614250OAI: oai:DiVA.org:kth-195198DiVA: diva2:1050643
QC 201611292016-11-292016-11-022017-01-09Bibliographically approved