August Brings Record Price Cuts
Housing prices are declining nationwide, with single-family homes dropping 10% to 23% and condos falling even harder at 12% to 26%.
As prices correct, zombie foreclosures are surging over 100% in states like Colorado and Washington.
Meanwhile, traditional competition is pulling back—fix-and-flip investors are exiting due to rising costs while builders cut prices and offer record incentives to move inventory.
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Zombie Foreclosures Tick Up as U.S. Vacancy Rates Hold Steady
Among states with at least 50 zombie properties, those that saw the biggest year-over-year increase in the rate of pre-foreclosure homes that were considered zombies were Colorado (up 115%), Washington (up 114%), Iowa (up 84%) and North Carolina (up 80%).
The 12 Bigger Cities with the Biggest Price Declines of Single-Family Homes (-10% to -23%) through July
Prices of single-family mid-tier homes exploded by 64% in two years between mid-2020 and mid-2022. They’re now back where they’d first been in May 2021, having wiped out 60% of the pandemic-era price explosion.
Condo Prices Already Dropped by 12%-26% in 21 Bigger Cities through July. Condo Bust Takes Shape
In the 10 years to the peak, prices exploded by 200% (Jacksonville, Tampa), by 260% (Arlington, TX), 300% (Detroit, Aurora, CO), or even 350% (Phoenix, Mesa, AZ).
Fix-and-Flip Real Estate Investors Pull Back
Higher interest rates and a fast-shrinking labor market are taking their toll on the fix-and-flip housing market. Investors are starting to pull back, as costs rise and the time it takes to sell their renovated homes lengthens.
Seven Major Metros Where Rents Are Flat or Falling This Summer
The number of large metro areas with annual rent declines or no growth nearly doubled from June. Year-over-year rents fell in Phoenix, San Antonio, Denver and Austin; annual rent growth is roughly flat in Dallas, Las Vegas and Orlando.
Incentives Rise as Builder Confidence Matches 2022 Low
High mortgage rates (hovering around 6.58%), elevated new-home prices, and affordability pressures continue to weigh heavily on builder sentiment. In August, 37% of builders reported price cuts averaging 5%, while 66% offered sales incentives—the highest share seen in the post-COVID era.
