Neighborhood impact of foreclosure: A quantile regression approach

This paper uses quantile regression, while accounting for spatial autocorrelation, to examine the simultaneous space-time impact of foreclosures on neighborhood property values. We find that negative price externalities associated with neighborhood foreclosures are greatest (1) among lower-priced homes, (2) within 250 ft of the property and (3) in the 12 months following a foreclosure auction. By using quantile regression, we are able to also investigate changes in the distribution of house prices associated with varying levels of neighborhood foreclosures.