Foreclosure rates increase in higher value homes

HousingWire reports:

Higher-priced houses are taking a greater share of foreclosure activity, with houses priced in the top tier accounting for nearly one-third of all foreclosures in July 2009, according to new data from Zillow.com.
“Top-tier” homes in terms of local values accounted for 30% of foreclosures in the month.

Houses in the bottom third and middle third of values took an equal share — 35% each — of foreclosures in July, while the highest tier of values claimed the rest.

Compared to 2006, top-tier homes now make up nearly twice the proportion of foreclosures, according to Zillow.com. At the height of the real estate bubble, properties in the lower one-third of home values made up 55% of all foreclosures, while homes in the medium range accounted for 29%. The top one-third represented only 16% of foreclosures, according to the data.

The points were made that Option Arms still have not reached their peak recast point so those numbers are still rising and a significant percentage of subprime borrowers have already suffered foreclosure. I’d expect similar percentages to continue into the immediate future as job losses and property value losses will continue to impact higher value homes.