Estimates of the Size and Source of Price Declines Due to Nearby Foreclosures
By Elliot Anenberg, Edward Kung. 2014
229 citations recorded by the source corpus.
Using new data on real estate listings, we provide new evidence that foreclosures have a causal effect on nearby house prices and disentangle the effect into two sources: competition and disamenities. We identify the causal effect by showing that sellers respond to new REO listings in the exact week of listing, not a week before and not a week after. We disentangle competition and disamenity effects by examining the spillover effect across various stages of the foreclosure process. We find that competition effects are important in all areas, but only find evidence for disamenity effects in high density, low price neighborhoods.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/359dee8a0d29038723ad18464379862ab4d0e2c4
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- John Y. Campbell
- P. Willen
- Kristopher Gerardi
- Daniel A. Hartley
- Vincent Yao
- E. Rosenblatt
- Carolin E. Pflueger
- Luigi Guiso
In Finance
- John Y. Campbell
- P. Willen
- Kristopher Gerardi
- Daniel A. Hartley
- Vincent Yao
- Carolin E. Pflueger
- Doron Avramov
- David E. Rapach
Citations in the corpus
- Mortgage Market Design (2012, background): “See also Anenberg and Kung (2012) and Gerardi et al.”
- The Effect of Foreclosures on Nearby Housing Prices: Supply or Disamenity? (2014, background): “The other study that attempts to separate the supply and dis-amenity effect of foreclosures is Anenberg and Kung [2014]. Anenberg and Kung [2014] look at the effect of foreclosures in multiple listing service (MLS) data on nearby asking prices for homes.”
- Foreclosure externalities: New evidence (2015, result): “Further, Hartley finds effects only within 0.05 mile and no effect between 0.05 and 0.10 mile, contradicting most previous research, including CGP. Anenberg and Kung (2012) look at sales of single-family properties near San Francisco over the period 2007–2009 and augments CGP by including informatio”