New Canaan Had Highest Foreclosure Rate for $1 Million+ Homes in '12

New Canaan reportedly had the highest foreclosure rate in the U.S. for homes valued over $1 million in 2012.

According to a report in the Wall Street Journal, citing figures provided by Zillow, New Canaan had 25 foreclosures on homes valued $1 million to $2 million from January through October last year.

Darien and Westport made fifth and seventh on the list, each with 17 foreclosures.

According to the report, nearly 2,000 million-dollar homes in the U.S. went through foreclosure during the same period. That's down 33% from 2011 and by more than half from 2010, according to the report, citing figures from Zillow.

Interestingly, the decrease in foreclosures on $1 million+ homes has resulted in a shortage of stock in the past year. This in turn has resulted in a sense of urgency, even anxiety, among buyers and, in some areas, the return of "bidding wars" on million-dollar homes, according to the report.

Growing buyer confidence, strong foreign demand, lower mortgage rates and more realistic sellers also helped propel the $1 million+ home market to a  rebound in 2012, according to the report, titled "Luxury Snaps Back."

Nationally, sales of $1 million+ homes rose by 9% in the first nine months of 2012, compared with the same period one year ago, according to the Wall Street Journal report, citing figures from DataQuick MDA.

For more check out the Wall Street Journal report.