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作者

Itzhak Ben‐David

来源

REAL ESTATE ECONOMICS,Vol.47,Issue3,P.643-684

语言

英文

关键字

作者单位

Department of Finance, Fisher College of Business, The Ohio State University, 700D Fisher Hall, 2100 Neil Ave, 43210 Columbus, OH National Bureau of Economic Research

摘要

I document a strong correlation between paying the full listing price on homes and borrowing 100% loan‐to‐value. Homebuyers who do both overpay by 2.8% to 3.9% ($4,800 to $6,700) and are 22.7% more likely to have their properties foreclosed within one year. The correlation is not mechanical: there is a discontinuity in the average leverage around the full listing price. The correlation is stronger in areas with a high fraction of financially constrained and unsophisticated residents, and in areas of high past price growth (potentially indicative of buyer optimism).