Many Americans are making this decision to knowingly walk away from their homes. This is spreading all across the board and in our market, I am seeing this occurring more frequently in the higher end of the market.

In San Ramon, the estate houses in Norris Canyon Estates that used to sell in the mid to upper 2 Million dollars are now selling for mid 1 millions. Like a ripple effect, the recent recession will impact Americans for years to come, according to a study released Monday by the Mortgage Bankers Association (MBA).

According to Professor Joe Peek, America may unfortunately face the possibility of being caught in a vicious cycle. He said cutbacks in consumer and business spending are likely to contribute to a more anemic recovery, which in turn, will cause a deepened and prolonged weakness in spending and further undermine the recovery.

Below is a chart showing the price movement of high end properties over the last 2 years.