Submitted by Michael Krieger of Liberty Blitzkrieg blog [11],
I’ve always wondered what would happen once private equity players decided enough was enough and foreign oligarchs finished their real estate money laundering transactions. [12]Well, we might be about to find out.
According to RealtyTrac, foreclosures for homes worth $5 million or more are up 61% this year despite the fact that overall foreclosures are down 23%. The question is, does this merely represent holdouts from the prior housing bubble, or is it a sign of things to come? Only time will tell. From CBS:
Foreclosures in the ultra-high-end housing market — homes worth $5 million or more — have skyrocketed 61 percent over last year.
That growth bucks the trend: Overall foreclosures are down 23 percent, according to a new report [13] from Irvine, Calif.-based real estate information site RealtyTrac.
Until lately, that is. “Recently, we’ve been hearing from agents that they’re starting to see the high-end properties go to foreclosure and there turned out to be some data to support this notion that high-end holdouts are finally moving through the foreclosure process,” he said.
It may be a sign that lenders are now financially stable enough to start moving on ultra-high-end delinquencies and take the substantial losses these multi-million dollar homes represent.
Florida and California account for more than half the total number of multi-million dollar foreclosures . The Miami-Fort Lauderdale area had the largest number of foreclosures at 47, followed by the Los Angeles-Long Beach area with 35, but the trends are very different. Miami saw a 488 percent increase in foreclosures, while L.A. only saw a 3 percent increase.
Those two cities are followed by Atlanta, Orlando and the New York City and northern New Jersey area.
Top markets with ultra high end foreclosures:
Full article here [16].