Foreclosures have jumped a whopping 61% in the past year for luxury homes.
But don't freak out: This number doesn't represent the whole housing market. In fact, a new report from Realty Join says overall foreclosures are down 23% this year.
So, where is this sudden rush of high-end foreclosures coming from?
Here are a few reasons why we could be seeing more luxury homes hitting the market now:
1. Lenders are back on their feet.
A multi-million dollar foreclosed home is a big loss for any bank, so the rise in foreclosures may be a sign that lenders are now financially stable and ready to start moving in on the deliquent homes.
2. Home prices have made steady leaps.
Now that home values are on the rise, lenders may think they'll be able to get a better return on their foreclosures than they would've earlier in the year. And with strong sales and turnover in the high-end luxury market this year, there's a good chance these homes will be sold pretty quickly. Besides, there's not much a super-rich buyer loves more than getting a great deal on a luxurious mansion.
3. Wealthy homeowners finally letting go.
While wealthy homeowners typically have the financial means to hold off the foreclosure process longer than others, at some point they have to call it quits too. Affluent homeowners may have decided their homes were too big of a burden and let them fall into foreclosure.
Find out more about the explosion of luxury foreclosures in my new CBS story.
Rainers, Have you noticed a lot of luxury foreclosures entering the housing market recently?
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.