Here is a great article from Henry Blodget on why the high end real estate market will be the next to crash.
He's absolutely right. I see it where I live in Seattle and in the ultra-rich communities that surround the city, places like Mercer and Bainbridge Islands, Medina, and along Lake Washington.
Demand for these properties have held up fairly well over the last year or so. After all, rich people are rich. They can spend money when others don't have any.
But lately, the market is as soft as a month old banana. MUSH.
Look for bargains in this area for sure. MAJOR ones. 50% specials. But of course these properties are usually all cash deals and even a $5 million house selling at half off is still a major capital suck.
Robert J. Abalos, Esq.