IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v13y1985i1p48-57.html
   My bibliography  Save this article

The Effects of Assumption Financing Across Housing Price Categories

Author

Listed:
  • Vinod B. Agarwal
  • Richard A. Philips

Abstract

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.

Suggested Citation

  • Vinod B. Agarwal & Richard A. Philips, 1985. "The Effects of Assumption Financing Across Housing Price Categories," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(1), pages 48-57, March.
    • Handle: RePEc:bla:reesec:v:13:y:1985:i:1:p:48-57
    DOI: 10.1111/1540-6229.00340
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.00340
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.00340?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andres Jauregui & Alan Tidwell & Vivek Sah, 2019. "Sample Selection Approaches to Estimating and Allocating House Transaction Funding Price Differentials," The Journal of Real Estate Finance and Economics, Springer, vol. 58(3), pages 366-407, April.
    2. Michael LaCour-Little & Zhenguo Lin & Wei Yu, 2020. "Assumable Financing Redux: A New Challenge for Appraisal?," The Journal of Real Estate Finance and Economics, Springer, vol. 60(1), pages 3-39, February.
    3. G. Stacy Sirmans & C.F. Sirmans & Stanley D. Smith, 1987. "Creative Financing, House Prices, and Property Tax Inequities," Urban Studies, Urban Studies Journal Limited, vol. 24(5), pages 409-415, October.
    4. Mark A. Sunderman & Roger E. Cannaday & Peter F. Colwell, 1990. "The Value of Mortgage Assumptions: An Empirical Test," Journal of Real Estate Research, American Real Estate Society, vol. 5(2), pages 247-258.
    5. Richard A. Phillips & Eric M. Rosenblatt & James H. VanderHoff, 1992. "The Effect of Relative Pricing on the Fixed-Rate Mortgage Term Decision," Journal of Real Estate Research, American Real Estate Society, vol. 7(2), pages 187-194.
    6. Steven P. Mooney, 1990. "Cash Equivalency in Dichotomous Residential Markets," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 89-106.
    7. J. Allen Seward & Charles J. Delaney & Marc T. Smith, 1992. "An Empirical Analysis of Housing Price Appreciation in a Market Stratified by Size and Value of the Housing Stock," Journal of Real Estate Research, American Real Estate Society, vol. 7(2), pages 195-206.
    8. James E. Larsen & Won J. Park, 1989. "Non‐Uniform Percentage Brokerage Commissions and Real Estate Market Performance," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 422-438, December.
    9. James E. Larsen, 1989. "Money Illusion and Residential Real Estate Transfers," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 13-19.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:13:y:1985:i:1:p:48-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.