The Real Deal Miami

Million-dollar foreclosures proliferate in Miami

February 23, 2012 04:30PM

The share of foreclosure activity in Miami on homes worth more than $1 million activity is more than four times the national average, according to CNN.

Nationwide, less than 2 percent of all foreclosures are on seven-figure homes, while in Miami that number is more than 9 percent, RealtyTrac data show.

But the rest of the country is quickly catching up. The share of foreclosures on properties worth more than $1 million has grown 115 percent since 2007, while the share of activity on properties valued between $500,000 and $1 million has fallen 21 percent. Meanwhile, the share of activity on homes worth more than $2 million has skyrocketed 273 percent.

Foreclosure activity is shifting towards pricier properties because many wealthy Americans have been able to work with lenders to postpone foreclosure until recently, CNN said. Moreover, now that the wealthy have come to accept that a recovery is far off many are carrying out strategic defaults. [CNN]