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Foreclosures Create Some Deals Among Luxury Homes, DP

Even as Denver's overall housing market shows signs of improvement, the number of high-end homes slipping into foreclosure continues to climb. Last week, 31 homes valued between $500,000 and $4 million went into foreclosure, including four over $1 million, said Ron Woodcock, a broker with Re/Max Southeast who tracks foreclosures. Much of the problem stems from the inability of potential buyers to obtain "jumbo" loans — financing above $417,000. "Jumbo money has dried up across the country, and that market is going to be a disaster," ...Between 2008 and 2009 ... foreclosure sales increased 56 percent, from 16 to 25 homes sold, in that time frame. Short sales were up 433 percent, from three to 16 sales."We expect to see that the number of luxury distressed sales will continue to increase dramatically in 2010," Welsh said. "If you are a buyer with a long time horizon, 2010 will be a great time to hunt for deals."
By Margaret Jackson, Jan. 3, 2009  Denver Post

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