Deals Are Dying. Prices Will Follow
Hotels in the Bay Area are slipping into foreclosure as defaults crush deal flow, while the multifamily sector is buckling under a wave of new supply, pushing rents and occupancy rates down.
At the same time, for-sale inventories are piling up in cities like Phoenix and Denver, with homes sitting on the market for months as buyers retreat.
Nearly 1 in 7 pending sales fell through in June—the worst rate ever recorded for that month—signaling rising buyer hesitation and shaky deal fundamentals.
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Foreclosures, Defaults Undermine Hotel Deals in Bay Area, California
Loan defaults and foreclosure-related pullbacks are undercutting hotel deal activity across the Bay Area, with distressed sales now dragging total transaction volume even as total dollar value remains inflated by select high-end deals.
Apartment Rents Drop in July as Vacancies Move to Multiyear High
Massive waves of new supply continue to flood the apartment market, driving vacancy rates higher and forcing average rents down year-over-year.
Inventories of Homes for Sale Surge in Denver, Seattle, Phoenix, Tucson, Portland, Las Vegas, Salt Lake City, Albuquerque, Boise
Listings in markets like Denver and Phoenix are hitting decade highs while median days on market skyrocket—70 days in Phoenix; 52 in Denver and Salt Lake City—highlighting collapsing demand.
1 in 7 Pending Home Sales Fell Through Last Month, The Highest June Level on Record
Roughly 14.9% of all pending U.S. home sales were canceled in June, the highest June rate since tracking began in 2017, as prospective buyers pulled out due to economic uncertainty or inspection issues.
Homes for Sale in Big California Markets Pile Up, Days on the Market Spike to Highest in Years, despite Surge of Delistings, as Buyers Vanished
California’s major metros—from L.A. by 38% to San Diego by 44%—are seeing active listings at June/July highs not seen since before 2016, while median days on market soared to 51 in L.A., 45 in San Francisco, and 44 in San Diego.
Pandemic Boomtowns Now Lead in Price Cuts
Over 26.6% of U.S. listings saw price reductions in June—the highest June rate on record—while pandemic boomtowns like Denver (38.3%), Raleigh (36.4%), Phoenix (\~35.5%), Dallas, and Nashville led the charge.
