It's an older story from the DC suburbs where a lot of Deep Creek buyers reside but given some of the recent comments here and elsewhere I thought it was relevant if nothing more than to show that the so called "luxury" market is not necessarily immune to the real estate downturn as a result of the bursting of the housing bubble. Read the full story here or see the following excerpts:
The foreclosed signs that have been sprouting up in less-affluent communities since 2006 are beginning to appear in the well-off suburbs, attached to houses that once cost $1 million or more. Although those kinds of homes are in the minority now, real estate agents predict the numbers will swell.
Affluent neighborhoods have been able to stave off foreclosure longer, but the effects of once-popular loans, such as adjustable-rate and interest-only mortgages, are beginning to take their toll, economists and real estate agents said. The consequences are being seen in places such as Loudoun County, where the rapidly expanding population and income levels meant razing dairy farms for new subdivisions over the past two decades, as well as Fairfax and Montgomery counties, where new subdivisions proliferated and demand drove up prices.
Updated 11/29/08: And check out all these "luxury" homes that are now bank owned or in foreclosure. Then try to remember that the people who own these homes aren't affected by the trivial day to day matters like paying bills as the rest of us are .. or so agents trying to sell luxury properties at full price right now would try to tell you.
Don't forget to check back to Dan's Deep Creek Blog for future updates.
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