Nobody's home: MIT economist measures how much foreclosures lower housing prices
Tuesday, July 20, 2010 - 09:56
in Mathematics & Economics
Foreclosed homes dot the American landscape - they make up about one in 12 houses with under $1 million left on the mortgage. These foreclosures drive down home prices, both because they add to the housing supply and because the financial firms that acquire the houses want to unload them promptly.