Distressed Sales and the FHFA House Price Index

William Doerner and Andrew Leventis ()

MPRA Paper from University Library of Munich, Germany

Abstract: Trends in residential house values can be expressed by changes in House Price Indexes (HPIs). Since the recent housing crash, distressed sales have increased in numbers and have led to concerns about how they affect HPIs. This paper has three parts. First, FHFA’s standard HPIs are compared to HPIs constructed without distressed sales. Second, FHFA’s identification of distressed sales is validated against a public data source. Third, the distressed sale discount is shown to vary across time and place. The magnitude of the discount also depends on whether the current or prior recent sales are distressed.

Keywords: property value; house price index; HPI; repeat sales; distressed sales (search for similar items in EconPapers)
JEL-codes: C43 R30 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/61022/1/MPRA_paper_61022.pdf original version (application/pdf)

Related works:
Journal Article: Distressed Sales and the FHFA House Price Index (2015)
Working Paper: Distressed Sales and the FHFA House Price Index (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:61022

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