Awww, Now The Mortgage Crisis Is Hitting Rich Folks Too

Posted Wednesday, April 9, 2008

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  • Awww, Now The Mortgage Crisis Is Hitting Rich Folks Too

Middle class people have been suffering under mortgage meltdown since 2006. [Wonk Room] Now it�s hitting rich folks too.

The Financial Times reports that �in a sign that falling prices and home sales gluts are no longer limited to the nation�s declining rust-belt cities or bubble markets, prices for gilt-edged properties in East Hampton and Southampton have fallen sharply.� [Financial Times]

 

Here are the stats:

 

  • In 2007, â��sales of vacation property fell 31 per cent across the US, against a 10 per cent drop in sales of homes bought to live in.â�� [Financial Times]
  • The Wonk Room reports, â��In some of the countryâ��s most affluent counties, home foreclosures are well above the national average of 1/555. Loudon County, Virginia, for example, has a median family income of $98,000 and a home foreclosure rate of 1/69.â��
  • Itâ��s even affecting Congress. Roll Call reports that stocks that were linked to bad mortgages â��may have cost 51 Members as much as $13.2 million in stock value during the past 15 months.â�� [Roll Call]
  • Writes Sarah Dale of the Center for American Progress, â��Hopefully lawmakers, finally feeling the heat in their wallets, can get their act [together] with their most recent attempt at assisting struggling homeowners.â�� Find out how here: [Progress Report]

Rich folks can�t sell their summer home. Now that is a national crisis.

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