Well, (luxury homes) are definitely moving, but they’re not moving at the pace that’s going to burn off the inventory anytime soon, in my opinion, and that’s one of the problems. If you price a home accurately and correctly in the market, there are buyers out there for it, and that’s a positive. The problem, in my opinion, is that a significant amount of the inventory is overpriced and probably doesn’t have a chance of selling.
The bottom line (for buyers) is if you don’t have solid financials, if you don’t have under a 41-percent debt-to-income ratio, then forget about it, you’re not going to get a jumbo loan.
– Matt Garrison of the Matt Garrison Group and CondoShark.com, talking to Erin Burnett on CNBC’s Street Signs on Tuesday. Watch more clips of Garrison through his YouTube channel or CNBC.com.