We don’t often think of “rich people” as facing the same problems that we do. However, there are plenty of home mortgage loan failures that are starting to affect the higher end of the housing market. In places like Orange County, home prices are dropping — even though many thought that homes in that area would remain relatively unscathed.
Additionally, there are increasing amounts of foreclosures amongst the wealthier segments of the population, including celebrities. Celebrity foreclosures are becoming more common, and Ed McMahon is just one personification of this problem.
The fact of the matter is that housing values are declining across the country, and this is making it difficult for those with negative equity to keep up. Additionally, even those with higher incomes are seeing budget problems related to inflation as well as to shrinking returns on investments.
While it may not make those of us who aren’t considered wealthy feel that much better, at least we don’t have to feel so alone.