The Silent Crash in Real Estate
Condo prices are falling fast in big cities—Austin buyers from 2022 are already down 22%.
Mortgage demand just sank 13% as rates climb, and lenders are foreclosing on commercial buildings like an Uptown Charlotte tower.
New home inventory is stuck at 2007 levels, and foreclosure auctions are ticking up.
Top stories of the week
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In 15 Bigger Cities, Condo Prices Already -10% to -22%
In Austin, which is on the forefront of this movement, prices have already given up nearly two-thirds of the 60% three-year gain. People who bought at the top in mid-2022 are 22% underwater.
Mortgage Demand Sinks 13% as Rates Soar
The refinance index decreased 20% from the previous week, but was still 43% higher than the same week one year ago. The refinance share of mortgage activity decreased to 37.3% of total applications from 41.3% the previous week.
Lenders Seize Uptown Charlotte Office Tower After Foreclosure
Demand for premium office space remains high, but aging office properties are struggling in the wake of rising rates, remote work shifts and flight to quality trends pushing companies to newer buildings.
New Houses for Sale Stuck at Highest Level since 2007
Single-family houses for sale at all stages of construction in March remained at 493,000 houses, roughly unchanged for the fifth month in a row, up by 8.4% from the bloated levels a year ago, and up by 49% from March 2019.
Foreclosure Auctions Rise in Q1 After VA Moratorium Expires
Completed foreclosure auctions were up 20% from the previous quarter and up 4% from a year earlier, despite some mid-quarter softening. Scheduled foreclosure auctions, a leading indicator of future completions, also rose 14% quarterly to a five-quarter high.
The Bay Area’s Real Estate Market is Flashing a Key Warning Signal
In March, about 1,300 new homes hit the market in the San Francisco metropolitan area. But only 780 homes received an offer. That was the largest March gap for the San Francisco metro area since at least 2012, the earliest year for which Redfin has data.
