Spencer Rascoff on CNBC’s “Street Signs”
By: Jill Simmons, PR Manager | November 11, 2009
Zillow’s COO Spencer Rascoff (top, middle in photo above) was interviewed by CNBC’s Erin Burnett today about the high-end housing market. Zillow’s data shows that homes in the top tier of the market (top one-third of homes by value) are still declining, just not as badly lower-end homes.
Nationally, home values at the high-end are down 6.3% year-over-year, compared with the bottom tier, which is down 12.1% year-over-year. However, as we’ve discussed before, the real surprising news is that foreclosures are moving upscale. In 2006, at the height of the real estate bubble, high-end homes made up 16% of foreclosures. In July of this year, they made up almost one-third. This is due to high delinquency rates in prime, Alt-A and option ARM mortgages, which were more prevalent in higher-end homes than subprimes (the mortgages that fueled the cascade of foreclosures in the last couple years).
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- Categories: Real Estate Analytics
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Craig Blackmon on November 12, 2009 12:37 pm
Given that we’re in (or hopefully emerging from) the worst recession in 70 years, I’m not sure why its surprising that “high end” homes are also slipping into foreclosure. EVERYONE bought into the bubble, so when the bubble bursts — and other income dried up — everyone feels the pain. On the plus side, of course, those people looking to buy are in a very good position. Plus, there are now alternatives to the “traditional” 3% commission to a buyer’s agent, thus allowing for even greater savings in today’s market.