russglobal posted on August 15, 2009
The poor and middle classes aren’t the only ones that are facing hard times in this economic and housing debacle. Luxury home are now facing wide spread vacancies and hardship.
When I drive around Sandy, Springs, GA and look at all the For Sale signs, I have to shake my head. Sandy Springs used to be immune to market downturns, as well as other high end homes around the nation. But not now because the housing and financial markets are shaky at all levels.
What’s the blame? Multiple anomalies have caused these unprecedented changes.
- For one, those who are able to afford a luxury home are shrinking. Those who were once able to afford a million dollar home now has to file for bankruptcy.
- The rich are no longer immune to debt. Their mortgages and residual debt has increase over the last 10 years.
- The number of jumbo loan defaults has increased to 6.9% (source: Wall street Journal). This is three times higher than the rate for a traditional loan.
So, don’t think that some folks are untouchable; they are just waiting their turn.