The most revealing number in real estate this week is buried in a 2021 loan pool.
More than half of its outstanding balance is now delinquent.
Across the wider CRE CLO market, distress has jumped to 28% in a single month.
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$757 billion in multifamily debt comes due by 2028.
Bank repossessions are already up 42% year over year.
Here’s where that pressure is starting to turn into inventory, forced sales, and discounts:
🏢 CRE CLO Distress Jumps to 28%
📉 Foreclosures Rise 13% Year Over Year
💰 Multifamily Debt Wall Hits $1.8T
🏠 Half of Homeowners Miss a Payment
📈 Fed Hike Reignites Refinancing Fears
🔨 Builder Confidence Hits 3-Year Low
Video of the Week: Home Sellers Are Finally Giving Up: Concessions Are Everywhere
Chart of the Week: Office Special Servicing Hits a New High
Podcast of the Week: One Change Added $3 Million To Their Wholesale Business
CRE CLO Distress Jumps as 2021 Loans Sour
Distress in CRE CLOs reached 28% in August, while one 2021 loan pool is now 53% delinquent, showing how aggressively financed apartment deals are starting to break as floating-rate debt and weak property performance collide.
Foreclosure Activity Rises Across the U.S.
Foreclosure filings rose 13% year over year in August and REOs jumped 42%, with South Carolina, Nevada, Florida, Texas, and Maryland posting the highest foreclosure rates.
Multifamily Faces a $757B Maturity Wall
About $757 billion in multifamily debt is due between 2026 and 2028, while CMBS multifamily delinquencies have climbed to 7.1% and property values remain well below their 2022 peak.
Half of Mortgage Holders Struggle to Pay in Full
Half of mortgage holders say they were unable to make their full payment at least once in the past year, as higher property taxes, insurance costs, and escrow shortages push monthly housing costs higher.
Higher Rates Add Pressure to CRE Refinancing
The latest Fed rate hike is raising the cost of refinancing just as hundreds of billions in commercial property loans come due, increasing pressure on borrowers whose original loans were written at much lower rates.
Builder Confidence Falls to a 3-Year Low
Builder confidence dropped to its lowest level in more than three years as mortgage rates, labor shortages, and rising costs weigh on demand, while 38% of builders are now cutting prices and 66% are using sales incentives.
Video of the week