Apr
13
US House Prices, Default and Bankruptcy Rates in R
Some time ago I got inspired by a post on r-bloggers.com, showing the housing bubble in several US cities, nicely done with ggplot. I extended this to incorporate two measures of problems in the consumer credit markets: the percentage of people with a new bankruptcy, and the percentage of people with a new foreclosure, in each quarter from 2006 up to the end of 2011. The data are public (S&P Case-Shiller and NY Fed credit data).
I know this relationship is kind of common knowledge - at least for the foreclosure part - but I was surprised as to how pronounced it is. I did this for 2 groups of states. In both groups, in general, states whose house price came down from a higher level, have more people getting into credit difficulties. (I am not trying to establish a causal relationship here.
I know this relationship is kind of common knowledge - at least for the foreclosure part - but I was surprised as to how pronounced it is. I did this for 2 groups of states. In both groups, in general, states whose house price came down from a higher level, have more people getting into credit difficulties. (I am not trying to establish a causal relationship here.
