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Prior research indicates a discount for foreclosures sold through the multiple listing service (MLS). The purpose of this paper is to examine whether the effect of foreclosure on house value is consistent over submarkets based on property size in the US single family home market. The paper also tests whether the spillover effect of a nearby foreclosure on the specific property value varies across submarkets.

The full sample is split into four quartiles based on the square feet of all observations. The hedonic pricing models are estimated across full sample and three subsamples, in order to examine the effect of foreclosure on selling price. The number of neighborhood foreclosures within each combination of radii and timing intervals is used to investigate the spillover effect of a nearby foreclosure on the specific property value.

It is found that the quartile with smaller houses have the largest discount associated with a foreclosure of approximately 24 percent, while the medium and larger houses have a discount of approximately 19 percent. The results are robust after including a proxy for property quality. Second, the spillover effects of nearby foreclosures are lowest for small properties and highest for large properties. Adding additional controls for housing quality reduces the observed spillover effect.

The findings on foreclosure discount are consistent with Pennington‐Cross's argument, that the foreclosures in the smaller properties have lower appreciation than the larger ones. The paper's results about spillover effects also support the previous research, implying a greater stigma for foreclosed houses in neighborhoods with larger, more expensive houses.

The paper provides potential explanation for foreclosure discount and spillover effects of nearby foreclosure in the US single family residential markets.

This paper aims to investigate the foreclosure discount for the German residential market in the years from 2008 to 2011.

The determinants of the foreclosure discount are estimated in a hedonic price model. The analysis is based on a unique data set compiled from three different data sources with 135,000 foreclosed properties.

The findings reveal that residential units in foreclosures are sold at a discount of 19 per cent compared to residential units with similar characteristics that are not in foreclosure. Second, a regional pattern can be observed, with discounts being negatively correlated to unemployment risk and liquidity. Third, the model with interaction terms shows that foreclosure discounts are linked to specific property characteristics. Fourth, these object-related risks are typically smaller than regional risks or locational risks.

Given the highly fragmented system of Gutachterausschüsse in Germany, who are responsible for collecting transaction data, we were not able to directly analyze transaction data, but only a proxy for this price information.

The results can be important for financial institutions that are trying to assess the risk of lending for a specific object in a specific location. So far, banks primarily try to assess the default risk of private lenders by analyzing the debtor’s financial position and the quality of the property. The analysis provides insights into which characteristics of a property might imply additional risk, and in which region these risks are biggest.

To the best of the authors’ knowledge, this is the first attempt to analyze the foreclosure discount for the German housing market.

The purpose of this study is to determine the Turkish housing price and rent dynamics among seven big cities with a unique monthly data set over 2003–2019. The secondary purpose is to examine bubble dynamics within the price convergence framework through alternative tests.

The paper conducts two autoregressive distributed lag (ARDL) cointegration estimates for housing prices and rents and applies conditional error correction model to investigate the long-run drivers of the Turkish housing market. The authors compare ARDL cointegration in-sample forecasts and discounted cash flow (DCF) estimates with actual prices to determine the timing, magnitude and collapse period(s) of bubbles within the price convergence framework. In particular, the generalized sup augmented Dickey–Fuller (GSADF) approach time stamps multiple explosive price behaviors.

The ARDL results confirm the theory of investment value by addressing mortgage rates, the price-to-rent ratio and rents as the fundamental factors of house prices. The price-to-rent ratio offers a comparison mechanism among houses deciding to buy a new house in which rents increase monthly real estate investment returns, and mortgage rates act as the discount rate. One key finding is that these dynamics have a greater impact on house prices than mortgage rates. Furthermore, the ARDL, DCF and GSADF findings exhibit temporal overvaluations rather than bubble signals, implying that housing price appreciations, including explosive behaviors, are consistent with fundamental advances.

This paper is considered to be innovative in determining housing market dynamics through two different ARDL estimates for the Turkish housing price index and rents in real terms as dependent variables. The authors compare the boom and collapse periods of the real housing price index and its fundamentals via the GSADF test. A final key feature of this research is its extensive data set, with 11 different regressors between 2003 and 2019.

This study aims to explore the impact of monetary policy on house prices in Pakistan.

This study uses monthly time-series data of house prices, monetary policy, inflation and stock market index ranging from January 2011 to December 2016. All the series were checked for stationarity by using augmented Dickey–Fuller test, and lag length of 11 was decided on the basis of Schwert’z rule of thumb. Vector autoregressive (VAR) model was used because the series were not co-integrated.

The analysis revealed that monetary policy significantly affects house prices in Pakistan. Tight monetary policy results in lower house prices and vice versa. The relationship between monetary policy and house prices is unidirectional. The study also finds that higher inflation also leads to soaring house prices, but the variation in stock market index does not affect house prices.

To the best of authors’ knowledge, none of the existing studies explores the impact of monetary policy on house prices in Pakistan. The findings help investors and policy makers to understand the relationship between monetary policy and house prices to make better decisions.

The theoretical case for land value capture is well-known, but the effectiveness of affordable housing delivery as a capture mechanism is not so well-documented. Building on the earlier theoretical and empirical work of Whitehead (1991, 2007) and Crook and Whitehead (2002), the purpose of this paper is to consider the provision of affordable housing from a land value capture viewpoint, focusing on the process by which the amount of affordable housing is determined between landowners/developers on the one hand and local planning authorities on the other.

The paper adopts a mixed-mode approach for the data collection. Two surveys of local planning authorities were undertaken, together with a series of case study interviews.

The paper evaluates whether land value capture has been an effective mechanism for delivering affordable housing by focusing on three principal areas: first, the political agenda in relation to land value capture and the supply of affordable housing; second, the nature and motivation of the stakeholders involved in affordable housing decision-making; and third, the use of economic models as decision tools for determining the amount and type of affordable housing are negotiated.

The research provides some insight into the effectiveness of local authority affordable housing targets as a means of capturing the uplift in land value that results from the grant of planning permission.

ONLY two months ago (June issue) this journal advocated the more general utilisation of robots in manufacturing industry coupled with a reduction in working hours so that all possible should have a share in what work remains available for humans to do.

Three basic approaches to retail institutional change can be discerned in the last 30 years. The first contends that institutional evolution is a function of developments in the socio‐economic environment. The second argues that change occurs in a cyclical fashion. The third considers inter‐institutional conflict to be the mainspring of retail change. None of those approaches is found to be entirely satisfactory, and a series of combination theories has been posited. It is argued that regional institutional change is the result of environmental forces and a cycle‐like sequence of inter‐institutional conflict.

Britain lives or dies by exporting. Companies which already sell overseas must sell more. Companies which don't must start. This special guide tells you how.

The purpose of this paper is to explore some commonly held beliefs about individuals investing in over-the-counter (OTC) stocks (those traded on Over-the-counter Bulletin Board (OTCBB) and Pink Sheets), a fairly pervasive activity. The authors frame the analysis within the context of direct gambling, aspirational preferences in behavioral portfolios, and private information.

Contrary to popular perceptions, the modeling of the deliberate act of buying OTC stocks at a discount brokerage house finds that unlike the typical lottery buyers/gamblers, OTC investors are older, wealthier, more experienced at investing, and display greater portfolio diversification than their non-OTC investing counterparts.

Behavioral portfolio investors (Shefrin and Statman, 2000) invest their money in layers, each of which corresponds to an aspiration or goal. Consistent with sensation seeking and aspirations in behavioral portfolios, OTC investors also display higher trading activity. Penny stocks seem to have different characteristics and trading behavior than other OTC stocks priced over one dollar. Irrespective of the price of OTC stocks, the authors find little evidence of information content in OTC trades.

The paper provides insight into individual investor decision making by empirically exploring the demographic and portfolio characteristics of individuals trading in OTC stocks.