Economics at your fingertips  

Foreclosures, Returns, and Buyer Intentions

Herman Donner

Journal of Real Estate Research, 2017, vol. 39, issue 2, 189_214

Abstract: Using data from Stockholm, Sweden, it is examined if foreclosed properties are sold at a discount. This institutional setting differentiates from the U.S. and studies of REO properties. It is found 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 of a foreclosure also supports a discount on price.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) 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:

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().

Page updated 2023-03-26
Handle: RePEc:jre:issued:v:39:n:2:2017:p:189_214