We study the effect of judicial property auctions on the housing market in Italy’s provincial capitals between 2016 and 2018. The analysis is based on a large dataset of home sale ads published on the website Immobiliare.it.
The sale price of homes sold through judicial auction is well below market values - by between 42 and 56 per cent lower. If a property is sold through judicial auction it is more likely that owners of nearby homes for sale will revise asking prices downward to levels that are slightly lower than those for similar but slightly more distant residential units.
Published in 2023 in: Italian Economic Journal / Rivista italiana degli economisti, v. 9, 1, pp. 397-424.
