More Bank Owned Luxury Homes On The Horizon
Delinquency For Homeowners With Large Loans Soars
According to a recent New York Times article, more luxury bank owned homes are expected to hit Portland’s real estate market – along with other housing markets throughout the nation. The report, which is based on CoreLogic Data, shows that:
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent [...] By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.
The chart below shows the delinquency rate for mortgages in excess of $1M compared to those below $1M. Homeowners (and investors in particular) with large loans have stopped paying their mortgages at a rate that is almost twice as high as those with sub $1M loans.
Luxury Homes Sales In Portland Up 22%
Almost 500 homes in the Portland-metro- area sold for more than 500k in the second quarter of this year. That’s about 100 more than during the second quarter of 2009. Roughly 7% of these homes were owned by banks. That number is expected to rise as we head into the third quarter. Here’s a snapshot of some of the bank-owned luxury home sales that went down in Q2/2010:
- 2434 SW 17TH AVE sold for $1.2M. This 4-bed/4-bath 1909 home in Portland’ s Southwest Hills sold for 200k less than asking price. The previous owner paid $1.7M for it in mid 2006. Click here for details.
- 3820 SOUTHSHORE BLVD sold for 900k. After more than two years on the market this 5,000 SQFT home in Lake Oswego’s South Shore neighborhood sold for 700k less than the original list price. Click here for details.
- 23200 SW STAFFORD RD sold for 975k. This Stafford View Estates home on five and a half acres had been on the market since Feb 2009. The price was recently adjusted 150k downward. Two days later a deal was struck at 50k below asking price. Click here for details.
Roughly 50 Bank Owned Luxury Homes Currently For Sale
Fifty homes with a price tag greater than 500k are currently listed for sale in the Portland-metro area. Only half a dozen are actually priced above $1M., most are located in the Tualatin-Sherwood-Lake Oswego corridor.
Click on the button below to find our more about the top 10 bank-owned homes (by price):
(Top Ten)
