The high-end of the real estate market is collapsing
Bailout News, The Economy, Real Estate July 15th, 2009
We told this would happen. We are seeing sellers of high end homes throwing the towel and lowering their asking prices. All over the nicest parts of California, houses selling for more than 1 million dollars are sitting on the market with no offers and therefore, sellers have no choice but to lower the price. Unfortunately, this is just the beginning of the huge declines in the luxury housing market.
The USA Today reported on this.
One demographic is being largely ignored: homeowners with higher-price loans.
They don’t qualify for mortgage modifications under the Obama plan. They can’t get today’s low interest rates if they try to refinance. And with newly cautious lenders warier about who they lend to, just try to sell a home that costs $730,000 or more these days. In many cases, finding a buyer who can get financing takes far longer than for lower-price homes, because banks want as much as 30% down and six months of mortgage payments in reserve.
The result is a housing market in which sales and purchases of higher-price homes have come almost to a standstill, and it’s a predicament that could undermine the housing recovery.
July 18th, 2009 at 3:37 pm
Nice Blog for Real Estate People.
Boise Real Estate