A Foreclosure Next Door

A Foreclosure Next Door

by Travers Hartnett

Do you know how a foreclosure next door affects your home’s value and local community?

Recent research published in The Annals of Regional Science shows that while the effects of foreclosure are not uniform and vary significantly depending on a neighborhood configuration, a foreclosure can negatively impact surrounding open market sales within a one-tenth mile, starting 180 days before the sale.

Older, homogeneous age structures and non-gated neighborhoods with high vacancy rates experience the most substantial negative house price effect, and additional foreclosures in the same area have a cumulative negative impact.

Turnbull, G. K., & Van Der Vlist, A. J. (2024). Foreclosures and housing prices: Does neighborhood configuration matter? The Annals of Regional Science, 72(2), 407–433. https://doi.org/10.1007/s00168-023-01206-5

Turnbull, G. K., & van der Vlist, A. J. (2023). Foreclosures and housing prices: Does neighborhood configuration matter? The Annals of Regional Science, 72(2),407–433. https://doi.org/10.1007/s00168-023-01206-5

Travers Hartnett serves as CondoExec’s Editor in Chief. Travers holds more than 19 years experience providing insurance risk management services exclusively to Florida community associations. As a Certified Employee Benefits Specialist from the Wharton School and formerly a Human Services- Board Certified Practitioner, he has served on multiple boards, both as a volunteer and President.