An Empirical Analysis of Residential Property Flipping

Depken, Craig A.; Hollans, Harris; Swidler, Steve

doi:10.1007/s11146-009-9181-3

Cited by 39 publications

(35 citation statements)

References 12 publications

(11 reference statements)

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“…Although we had no reason to suspect a high concentration of investor speculation/flipping because of high carrying costs associated with condominium association fees, there is some known activity, such as Condo Vultures, Inc., in southern Florida (Depken et al, 2009). However, our dataset does not have enough appropriate seller information to make a clear determination of the motives of buyers, and a future follow-up survey study is necessary.…”

Section: Resultsmentioning

confidence: 97%

Opportunities for the United States condominium foreclosure market to provide amenable affordable housing options: The case of Tampa/Hillsborough, Florida

Gibson¹,

Li²

2013

Urbani izziv

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Residential foreclosure has been a serious issue during the recent economic recession in the United States, with a profound impact on individuals, households and communities. Various programs are being advocated and implemented to alleviate vacancy problems associated with concentrated foreclosures. This article explores how foreclosed condominiums might help provide affordable housing opportunities in urbanised areas of the U.S. We compare the selling prices of foreclosed and non-foreclosed condominiums in Tampa/Hillsborough, Florida, and then follow up with a neighbourhood study for four selected condominiums to assess their potential as amenable affordable housing options. It is found that foreclosed condominiums, although they do not have an overall statistically significant discount in market price, do show promise for potential affordable housing provision. The article contributes to the current discussion on foreclosures, vacancy and neighbourhood decline issues, and it especially seeks to offer policy implications in markets with a large stock of vacant condominiums but not enough affordable housing. However, the paper also acknowledges potential obstacles facing local communities when converting foreclosed condominiums into affordable housing.

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Section: Resultsmentioning

confidence: 97%

Opportunities for the United States condominium foreclosure market to provide amenable affordable housing options: The case of Tampa/Hillsborough, Florida

Gibson¹,

Li²

2013

Urbani izziv

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“…In addition, very short periods of ownership may be associated with problematic flipping or speculation. Following Depken, Hollans and Swidler (2009), in this section we define a flip as a holding period of less than 2 years 7…”

Section: Tenure and Turnovermentioning

confidence: 99%

“…Thus, nearly one third of non‐foreclosure sales were flips. By way of comparison, Depken, Hollans and Swidler (2009) estimate that 30% of transactions in their sample of houses that sold at least twice were flipped in Las Vegas over a similar time period. Interestingly, we do not observe any difference in the rate of turnover between single‐family and small multifamily properties bought between 1998 and 2006.…”

Section: Tenure and Turnovermentioning

confidence: 99%

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Are Investors the Bad Guys? Tenure and Neighborhood Stability in Chelsea, Massachusetts

Fisher¹,

Lambie‐Hanson²

2011

Real Estate Economics

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In this paper we examine the role of investors and occupant-owners in an urban context during the recent housing crisis. We focus on Chelsea, Massachusetts because it is a dense city, dominated by multifamily housing structures with high rates of foreclosure for which we have particularly good data. We distinguish between owner-occupiers and investors using local data, and find that that many investors are misclassified as occupantowners in the HMDA data. Then, employing a competing risks framework to study ownerships during the period 1998 through mid-2010, we find that local investors, who tend to invest more in relation to purchase prices and sell more quickly, experienced approximately 1.8 times the foreclosure risk of occupant-owners, conditional on financing. Non-local investors have no statistically significant difference in foreclosure risk from occupant-owners. Nonetheless, those owners with subprime purchase mortgages (most of whom are occupant-owners) faced the highest foreclosure risk when house prices fell.3

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“…Many of these sales involved property flipping. Depken et al (2009) define a flip as the purchase of a home with the intent of quickly reselling the property at a higher price. They examine all cases that involve two arms-length transactions for a property within a two-year window.…”

Section: Property Flippingmentioning

confidence: 99%

Flips, flops and foreclosures: anatomy of a real estate bubble

Depken

Hollans

Swidler

2011

Journal of Financial Economic Policy

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This paper aims to examine the anatomy of a real estate bubble. In the process, the paper identifies three phases of the market's evolution: flips, flops and foreclosures. An examination of the Las Vegas real estate market illustrates the three phases. Design/methodology/approach -The paper examines transaction data from the metropolitan Las Vegas area (Clark County) from 1994 to 2009. The first part of the analysis identifies the three phases of the bubble and is descriptive in nature. This is followed by more formal tests of Granger causality. Findings -In the early part of the sample, a large percentage of transactions are speculative or "flips" causing prices to rapidly increase. Eventually, flipping loses its profitability and over the last three years, there is an increasing number of foreclosures leading to falling prices. The descriptive analysis of the Las Vegas market is augmented with causality tests which show that prices were the driving force behind all three phases in the market's evolution.Research limitations/implications -Future research might focus on underlying structural inter-temporal relationships to augment the Granger causality tests. Practical implications -Analysis shows that price is the driving force behind a bubble and that loan modification programs alone will not solve the current housing crisis. Social implications -Government entities might expand neighborhood stabilization programs to affect both demand and supply of homes. Moreover, it might be prudent to include information related to flipping on multiple listing service agreements. Additionally, local governments should be consistent in their record keeping. Originality/value -To the best of the authors' knowledge, this is the first paper to examine the housing bubble using an extensive set of transaction data.

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An Empirical Analysis of Residential Property Flipping

Abstract: Residential property flipping, House prices,

Cited by 39 publications

References 12 publications

Opportunities for the United States condominium foreclosure market to provide amenable affordable housing options: The case of Tampa/Hillsborough, Florida

Opportunities for the United States condominium foreclosure market to provide amenable affordable housing options: The case of Tampa/Hillsborough, Florida

Are Investors the Bad Guys? Tenure and Neighborhood Stability in Chelsea, Massachusetts

Flips, flops and foreclosures: anatomy of a real estate bubble

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