CMBS Stress Is Creating Discounted Debt
CMBS delinquencies are climbing—especially in multifamily and office—nudging more loans toward special servicing.
Foreclosures just rose for the sixth straight month as national home prices slipped year over year and California homes sat longer than they have in a decade.
At the same time, sellers are pulling listings and buyer competition is the weakest it’s been for an August since 2018, so liquidity is thinning.
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Delinquencies Climb for Commercial & Multifamily Loans as CMBS Weakens
The delinquency rate for commercial mortgages increased in the second quarter of 2025 across most major capital sources. The largest increase was among CMBS loans, driven by rising delinquencies in both multifamily and office properties.
U.S. Year Over Year Foreclosure Activity Rises for Sixth Straight Month in August
Nationwide, one in every 3,987 housing units had a foreclosure filing in August 2025. States with the worst foreclosure rates were Nevada (one in every 2,069 housing units with a foreclosure filing); South Carolina (one in every 2,152 housing units); Florida (one in every 2,512 housing units).
The Most Splendid Housing Bubbles in America, Aug 2025: Price Drops & Gains in 33 Large Expensive Metros. Overall US Home Prices Fell YoY
At the national level, prices of mid-tier single-family homes, condos, and co-ops declined year-over-year in August, the first decline since June 2023, and both were the first declines since the Housing Bust.
In California, the Time a Home Sat on the Market in August before it Was Sold or Delisted Soars to Highest in at least a Decade
This jump in the number of days a home spends on the market is occurring despite the surge in delistings where frustrated sellers throw in the towel and wait for better days, rather than cut the price and make a deal.
Could Homeowners Insurance Become the Next Housing Crisis?
Nearly half of recent and potential homebuyers have experienced or anticipate experiencing difficulties obtaining or renewing homeowners insurance, as over one in four homes in the U.S. are at risk of exposure to severe or extreme climate risks.
Sellers Slam the Brakes; New Listings Fall to Record Low for August
High housing costs continue to sideline prospective buyers, making it easier for those still in the hunt. Zillow’s market heat index shows the market is balanced between buyers and sellers nationwide, with less competition among buyers than in any August since 2018.
