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You’d think that a home buyer who put down a deposit of $1 million would be pretty much locked into a purchase, even in the toughest circumstances. But, as The New York Times reports today, buyers in Manhattan’s expensive condo market are having second thoughts about properties they agreed to buy before the financial crisis. Buyers are leaving deposits of hundreds of thousands of dollars to more than $1 million on the table, the article says.
Even more surprising, some of the buyers who abandoned their massive deposits are back in the market, looking for better deals elsewhere.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.