Desperate House Sellers: Distress among Developers

• 成果类型: Article
• 署名作者: van Straelen, Eileen
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad076
• 发表日期: 2024
• 页码: 802
• 关键词: internal capital-markets; residential land; fire sales; price; networks; side

摘要

I identify the effect of financial constraints on product prices using granular data on home-builder housing developments from the 2006-2009 housing crisis. Builders who experience losses in one area subsequently sell homes in unaffected areas at a discount to raise cash quickly. When builders cut prices, they sell homes faster and builders cut prices more in areas in which price cuts produce larger declines in time-to-sale. Financially constrained firms are more likely to cut prices of homes in healthy areas following losses elsewhere. Firms cut prices following losses in other projects only during the crisis, not during the boom.Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online