The owner of circus entrepreneur James Bailey’s 1880s mansion in New York cut the price to $6.5 million after listing the home in November for $10 million — a drop of 35% in less than a year. High-end homes are lingering in this market.Loans to borrowers who bought pricey homes are going bad at a faster clip.Barclays Capital notes the “disturbing trend”–worsening delinquencies among so-called jumbo loans that are too large for government backing. The investment bank tracks the share of loans that roll into delinquency every month, and nearly 0.88% of jumbo loans made in the first half of 2007, for example, went delinquent in March from February, up from 0.77% in the previous month.
By Nick Timiraos, April 30, 2009, WSJ
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