Foreclosures in affluent towns in Massachusetts are on the rise.
They’re not tied to subprime mortgages. They’re instead tied to the economy and the stubbornly high 8.8 percent unemployment rate.
The numbers are relatively low right now. But if the economy doesn’t improve soon, they’ll probably increase in numbers. Preliminary filings indicate that’s exactly what’s going to happen.
The thinking here is that the foreclosures might cap prices in some towns, but won’t substantially drive down prices.
What do you think? Any thoughts?
P.S. This article suggests “underwater” foreclosures are about to increase – big time. But the author is focusing on California, Arizona and other suspect states. Massachusetts probably won’t be hit as hard (knock on wood).