Luxury Home Defaults

Ed McMahon may have wondered what else in new in defaulted real estate with the pending default of his Beverly Hills home.  But yesterday, Standard & Poor’s Ratings Service reported that even prime jumbo loans are starting to buckle.

Over a period of just one month–from June to July, 2008–jumbo loans originated in 2006 saw mortgage delinquencies rise 13.2 percent, while 2007 delinquencies rose 7.3 percent. Overall, mortgage delinquencies in the luxury real estate market are relatively low, with prime jumbos originating in 2006 reporting a serious delinquency rate of just 2.48 percent. But luxury home defaults are on the rise.

(For a more detailed report, go to: Prime Jumbos Showing Strain: S&P : Housing Wire)

It also appears that originations in the luxury market may be tightening. Thursday evening, Billy Taylor with Villa Sotheby’s International Realty in Del Mar, whispered that Chase Mortgage is pulling out of jumbo loan originations (at least at the broker level).

My prediction? There will be much more discussion about creative and seller financing in the months ahead. If financing is required for the purchase of a luxury home, it may be the seller who provides it.

Finally, stay tuned for Bob Dyson’s radical mortgage rescue program that could stabilize the real estate market very quickly–and that is quickly gaining prominent political support….

The post Jumbo Loan Defaults in the Luxury Market appeared first on Luxury Home Digest.

This piece is for those of us unable to make the biannual trek to Paris for the biannual Maison & Objet trade show that features the hottest home decor designs produced by the smartest and most influential names in the industry.

Those in the luxury home business are always on the prowl, trying to spot the latest trends that might help update, inspire and improve the luxury home decor.

Patty Bouley was fortunate enough to attend the Maison & Objet show and was able to sort through around 3000 new products and note the hot new home trends for 2008:

• Purple and grey are THE new color companions.The combination is classy and elegant and I am rethinking my bedroom colors.
• Nature gets glitzy. Floral patterns are now accented with metallics: Think bronze, platinum and silver.
• Aspen is hot. Look for nubby wools and furs, bare wood and hunting themes to create the cozy ski chalet feel.
• Morocco is in. Think perforated metal, hand-tooled leather, intricate textiles and hand blown glass. Great for eclectics.
• So is Japan. You will see vibrant colors (think red), stylized floral patterns, origami folds, and delicate hand stitching and embroidery,

Enjoy the following slide show from one of my favorite sites: PointClickHome

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