Forced Sales and House Prices

Stefano Giglio, Parag Pathak and John Campbell

Scholarly Articles from Harvard University Department of Economics

Abstract: This paper uses data on all house transactions in Massachusetts over the last 20 years to show that houses sold after foreclosure, or close in time to the death or bankruptcy of a seller, are sold at lower prices than other houses. Foreclosure discounts are on average at 27 percent of the value of a house. Moreover, foreclosures that take place within small local geographies of a house lower the price at which it is sold. Our preferred estimate is that a foreclosure at a distance of 0.05 miles lowers the price of a house by about 1 percent.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (374)

Published in American Economic Review

Downloads: (external link)
http://dash.harvard.edu/bitstream/handle/1/9887623/Campbell_ForcedSales.pdf (application/pdf)

Related works:
Journal Article: Forced Sales and House Prices (2011)
Working Paper: Forced Sales and House Prices (2009)
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:hrv:faseco:9887623

Access Statistics for this paper

More papers in Scholarly Articles from Harvard University Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Office for Scholarly Communication (osc@harvard.edu).