Thursday, July 15, 2010

High-end hit in foreclosure crisis...NOT!

It amazes me to no end that our mass media are allowed to write stories anymore. The SJ Mercury News (news?, really?) had the gall to publish a story entitled "Santa Clara County's high-end houses hit in foreclosure crisis". What's stunning is that near the end of the article the author says "Lee said that at this point, the default notices hitting expensive homes have not translated into actual sales of those homes." So this news isn't really news then?

Here's a little education for the media...

DEFAULT NOTICE DOES NOT EQUAL FORECLOSURE!

It never has and it never will. The media have made a business out of publishing scary "news" that is nothing of the sort. It's just conjecture and fear-mongering designed to sell papers. I tore apart the New York Times article that other day claiming that Los Altos is an example of a flashpoint for high-end foreclosures.

The reality is that sales of homes over $1 million in the SF Bay Area are up. A few areas where home prices crept over $1 million during the boom are having more difficulty now because they don't have a history of supporting that price point. However, Los Altos has been priced over $1M for a long time and will continue to do so. Inventory is dropping because homes are selling - fast.

In the Los Altos market, if someone got a notice of default they have a good chance of selling their home on the open market long before they go into foreclosure. Foreclosure crisis? I don't think so.

Read the original article for yourself:
http://www.mercurynews.com/top-stories/ci_15508205

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