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Find Foreclosed Homes in Luxury Real Estate Market
September 30th, 2009 by 
jparker
In almost all luxury housing markets in the country today, buyers can find foreclosed homes for less than $1 million. During the peak of the housing market, a million dollars would buy only a simple house. Now, in many neighborhoods in the country, a million dollars could get buyers luxury houses.
In 2007, the median home price in Santa Clara, California was $836,780. Enter subprime loans which allowed a staggering number of people to purchase homes that were usually above their means. The greater demand in properties fueled prices to increase, until the bubble burst which led to the collapse of the housing market and the spread of foreclosures.
Compounding the problem is the rising unemployment rate which did not spare even those in the higher income level. Sales of houses valued at $1 million dropped by over 50 percent from its peak in 2006. The foreclosure crisis may be a bane to some but it allowed others to find foreclosed homes in housing markets which usually they could not afford to buy into.
Industry experts said that for people who have money, this is the best time to purchase luxury houses. In Rancho Santa Fe, the San Diego County enclave of the rich and famous, the most expensive property listed on the market was $29.9 million. The area features luxury houses and golf courses.
Two years ago, finding a home priced for $1 million in Rancho Santa Fe was laughable. Now, because of the foreclosure crisis, home prices dropped by almost 30 percent. And distressed properties accounted for 15 percent of the total sales in the area.
Market data showed that nearly 2,800 houses in 20 metropolitan areas across the country were sold for over $1 million two months ago. The figures represented a decline of more than 50 percent from July 2005. The national home sales dropped by 27 percent.
Last month, California sellers with houses priced more than $2 million were reducing their prices by almost 14 percent. The national average home price cut was 10 percent.
The current market is the best for luxury homebuyers because they get about 20 percent more from the same amount than they could get two years ago. Industry experts said that people who have the money can find foreclosed homes that would suit their needs and budget.
