 How on Earth Did Spanish Banking Sell the Housing Stock?Jose Torres-Pruñonosa, Pablo GarcÃa-Estévez, Josep Maria Raya and Camilo Prado-Román SAGE Open, 2022, vol. 12, issue 1, 21582440221079916 Abstract: The accumulation of properties by Spanish banks during the crisis of the first decade of the 21st century has definitely changed the housing market. An optimal house price valuation is useful to determine the bank’s actual financial situation. Furthermore, properties valued according to the market can be sold in a shorter span of time and at a better price. Using a sample of 24,781 properties and a simulation exercise, we aim to identify the decision criteria that Spanish banking used to decide which properties were going to be sold and at what price. The results of the comparison among four methods used to value real estate—artificial neural networks, semi log regressions, a combined model by means of weighted least squares regression, and quantile regressions—and the actual situation suggest that banking aimed to maximize the reversal of impairment losses, although this would mean capital losses, selling less properties, and decreasing their revenues. Therefore, the actual combined result was very detrimental to banking and, consequently, to the Spanish society because of its banking bailout. Keywords: artificial neural networks; hedonic prices; banking; real estates; housing; Spain (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440221079916 DOI: 10.1177/21582440221079916 Access Statistics for this article More articles in SAGE Open |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.