Foreclosure Contagion and REO versus non-REO Sales

Stephanie Y. Rauterkus (), Norman G. Miller (), Grant I. Thrall () and Michael A. Sklarz ()
Additional contact information
Stephanie Y. Rauterkus: Assistant Professor of Finance, 1150 10th Avenue South, BEC 311-C, University of Alabama at Birmingham, Birmingham, AL 35294
Norman G. Miller: Professor of Real Estate, AV-111, 5998 Alcala Park, University of San Diego, San Diego, CA 92110
Grant I. Thrall: Managing Director and Owner, www.businessgeography.com, 8703 SW 38th Avenue, Gainesville, FL32608
Michael A. Sklarz: President, Collateral Analytics, 3465 Waialae Avenue, Suite 330, Honolulu, HI 96816

International Real Estate Review, 2012, vol. 15, issue 3, 307-324

Abstract: We examine the real estate owned (REO) discount by using ZIP code-level data on foreclosure rates, distressed and non- distressed sales in Chicago, Illinois. We find significant differences in price between distressed and non-distressed properties in high- versus low-foreclosure rate neighborhoods. We expand this analysis to determine if trends in the REO discount can be explained by trends in foreclosure rates and if this correlation can be used to identify a ¡¥tipping point¡¦ in foreclosure rates. We identify key relationships between trends in the REO discount, the proportion of REO sales to total sales, and sales volume.

Keywords: REO; Foreclosure; Contagion (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.gssinst.org/irer/wp-content/uploads/20 ... us-non-reo-sales.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ire:issued:v:15:n:03:2012:p:307-324

Ordering information: This journal article can be ordered from
Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850
https://www.gssinst.org/gssinst/index.html

Access Statistics for this article

International Real Estate Review is currently edited by Professor Sing Tien Foo and Professor Ko Wang

More articles in International Real Estate Review from Global Social Science Institute Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850.
Bibliographic data for series maintained by IRER Graduate Assistant/Webmaster ().