: Research from the Cleveland Fed distinguishes between "supply effects" (increased inventory lowering prices) and "disamenity effects" (blight from vacant homes lowering prices), noting these vary based on neighborhood vacancy rates. Bidding Dynamics & Information Asymmetry
: A study published in PMC - NIH finds that foreclosures have a significant negative impact on the listing prices of nearby homes, with prices within 150 meters dropping by roughly 1.1%. buying a home at a foreclosure auction
Research often focuses on how foreclosure auctions affect local housing markets and the subsequent use of those properties: : Research from the Cleveland Fed distinguishes between
Papers intended for legal or real estate practitioners emphasize the unique risks of these transactions: buying a home at a foreclosure auction
Academic analysis often looks at the auction process itself and the advantage held by certain participants:
: A report by the Urban Institute highlights that properties sold at auction are overwhelmingly purchased by "mom-and-pop" investors who renovate them for resale to owner-occupants.