The recently touted "recovery" in real estate sales (see post below) is a dangerous myth. At some point soon the Real Estate market will implode; and with it the banks holding the mortages to high end (More than $300,000 in price) foreclosed houses.
Bank Withholding of High-End Foreclosures from the Market is Nationwide
The Data from RealtyTrac reveal a clear pattern on the part of banks to withhold most repossessed homes from the market and nearly all of those listed on RealtyTrac for more than $300,000. Is this occurring throughout the nation?
CLICK ON HEADING FOR LINK TO ARTICLE WITH A REVEALING TABLE AND DECIDE FOR YOURSELF
Will this bank strategy keep the market for homes over $300,000 from imploding? Not a chance.
For example: In Bergen County NJ, just across the GW Bridge, there are 615 already bank repossessed homes, according to RealtyTrac. 31 (5%) are on the market currently, but only 4 (less than 1%)are priced over $300,000!
This is a better example; look at the article linked above for much worse numbers.
Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees. According to Fitch Ratings, mortgage delinquencies for prime jumbo mortgages soared to 10.3% in May as underwater owners walked away in droves. That spells serious trouble for the five states which account for 2/3 of all outstanding jumbo loans - California, Florida, New Jersey, Virginia and New York. The problem goes well beyond these states, however. Housing markets throughout the United States for $300,000+ homes are in for rough sailing and prices are extremely likely to be headed for a real plunge.