The Effects of Assumption Financing Across Housing Price Categories

This study employs a standard housing valuation model to analyze the capitalization of below‐market financing across housing price categories. The study also investigates the effect of secondary financing on housing prices and the effect of the expected holding period on discount capitalization. Usi...

Full description

Saved in:
Bibliographic Details
Published in:AREUEA Journal 1985-04, Vol.13 (1), p.48-57
Main Authors: Agarwal, Vinod B., Philips, Richard A.
Format: Article
Language:English
Subjects:
Assumption
Effects
Home financing
Housing
Housing prices
Mathematical models
Studies
Valuation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study employs a standard housing valuation model to analyze the capitalization of below‐market financing across housing price categories. The study also investigates the effect of secondary financing on housing prices and the effect of the expected holding period on discount capitalization. Using a randomly selected sample of 1981–82 housing transactions the study finds: the discount associated with below‐market financing is inversely related to the absolute level of housing prices; secondary financing bears no systematic relationship to housing values; and discount capitalization is inversely related to the expected holding period.
ISSN:1080-8620
0270-0484
1540-6229
DOI:10.1111/1540-6229.00340