Prices Are Falling Faster This Fall
Foreclosures and bank-owned sales are climbing fast while buyers are pulling back.
Prices in once-hot “Zoomtowns” and cities like Cape Coral and St. Louis are tumbling back to their 2008 levels.
And even though mortgage rates are the lowest they’ve been in over a year, confidence is still fading, hinting that the real correction might just be getting started.
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Distressed Property Volume Climbs as Investor Demand Softens
Foreclosure auction volume rose 31% year-over-year and 4% from the previous quarter, reaching the highest level in more than two years. REO auction volume also climbed, up 15% annually and 1% quarter-to-quarter.
The Cities Where Condo Prices Are Now Below their Housing Bubble Peaks 20 Years Ago
Condo prices in several U.S. cities have crashed all the way back to their early-2000s housing bubble peaks, erasing two decades of gains. Cape Coral, Baton Rouge, Lafayette, Silver Spring, and St. Louis now sit below their 2006–2008 highs.
RIP Zoomtowns: Home, Real Estate Prices in Once-Hot Cities Are Falling
The pandemic’s hottest “Zoomtowns” are now flooded with listings and desperate sellers slashing prices to move inventory. Migration has slowed, builders overbuilt, and homeowners are meeting reality as price cuts sweep across the South and Mountain West.
Home Equity Rates Decline in Third Quarter
Homeowner equity slipped again in Q3 2025, with just 46.1% of mortgaged homes considered equity-rich. Meanwhile, seriously underwater properties rose to 2.8%, climbing year-over-year in 46 states despite record-high home prices.
Sales of Existing Single-Family Homes Rise but Still 23% Below 2019
Single-family home sales ticked up 1.7% in September but remain stuck 23% below 2019 levels marking the third straight year of historically weak demand. The market has splintered: Sun Belt and West Coast cities are seeing double-digit price drops, while places like Chicago still notch fresh highs.
Mortgage Rates are the Lowest in Over a Year. Will the Housing Market Respond?
Mortgage rates just hit a 13-month low at 6.19%, sparking a modest uptick in home sales and a $9,500 boost in buyer purchasing power. But most homeowners are still sitting tight, unwilling to sell until rates drop further and stay there.
The Shutdown’s Main Impact on Housing so Far? Buyer Confidence
The government shutdown is sapping buyer confidence, with pending sales slipping even as mortgage rates hit their lowest point in over a year. Economic jitters are keeping demand muted, while delays from shuttered federal agencies threaten to slow closings further.
