Credit Constraints and Pride Expectations of Homeowners

M.I. Droes, W.H.J. Hassink

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This paper examines the effect of credit constraints on the sale price expectations of homeowners. We extend the results of Genesove and Mayer (1997) by using a sample of mover and non-mover families living in the Netherlands-a country without formal down-payment requirements. We find that homeowners who are more credit constrained expect to sell their house for a higher price. Homeowners already seem to compensate for credit constraints at the very first stages of the transaction process. These results imply that the findings of Genesove and Mayer (1997) are much more generally applicable than previously considered. © 2014 © 2014 Taylor & Francis.
Original languageEnglish
Pages (from-to)730-742
Number of pages12
JournalHousing Studies
Volume29
Issue number6
DOIs
Publication statusPublished - 2014

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