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Steven Swidler, Walter E. Hanson/KPMG Professor of Business and Finance, was quoted in an Oct. 11 Bloomberg article about how rising interest rates and falling demand have negatively affected the fortunes of home flippers.
Flippers largely will continue to sell and will keep buying undervalued homes, despite the risks caused by the slowdown in the real estate market, said Swidler, whose research interests include real estate finance.
“It’s a human foible: We hate to take losses and we don’t necessarily adjust expectations to what they should be,” he said. “It’s like the Kenny Rogers song, The Gambler. Some don’t know when to fold.”
