Second home market takes a hit – in Colorado and elsewhere –
Luxury high-priced homes are languishing on the market. Nationally, at the current sales pace, there’s about a 40-month supply of homes on the market for $750,000 or more, according to the National Association of Realtors. That’s more than double the stock in mid-2007, before the credit crunch. By contrast, there is now less than a 10-month supply for all homes…“The high end is the worst performing sector of the residential real estate market, unquestionably,” said Bernard Baumohl, Chief Global Economist of the Princeton, N.J.-based Economic Outlook Group.The recession and collateral damage in the stock markets, have knocked many luxury buyers out of the market. Falling home prices coupled with new appraisal rules have scuttled many deals. And, lenders have jacked up interest rates and down payment levels for high-priced mortgages.
By Adrian Sainz, July 7, 2009 Aspen Times (Associated Press)

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