📢 Condos Tank While Buyers Vanish
The gap between motivated sellers and actual buyers just hit a 10-year high
Condo owners across 23 major cities are watching their investments crater, with prices down 12% to 28% this year.
Empty units are piling up and rents are getting slashed just as mortgage resets start hitting.
At the same time, the flood of distressed properties keeps growing while buyers are backing away from the market.
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Credit is tightening and margins are shrinking, so fewer investors are willing to step in even as bargains multiply.
The mismatch is getting worse every week - more desperate sellers, fewer serious buyers.
That gap is exactly where the opportunity sits for anyone still holding dry powder.
In this edition of the AltReports:
🏢 Empty units pile up as owners slash rent
⚠️ Credit squeeze kills investor appetite
🔴 Decade-long bubble finally bursting wide open
💀 Toxic loans expose busted system
🌊 Underwater properties jump 7% to 2.2M
😨 Loan mods up, reserves do
wn—red flag
Video of the Week: Record Number of Home Purchases JUST GOT CANCELLED
Chart of the Week: 9 Markets Where Rent Grew for 5 Years
Podcast of the Week: The Fed’s BIG Housing Market Wake Up Call
Condo Crash Hits 23 Major Cities
Condo prices have gone sideways off a cliff, diving 12% to 28% year-to-date through September in 23 big US cities.
Owners are stuck with empty units or slashing rents, and as mortgage resets loom and lenders pull back, more will cave.
💡 Investor Takeaway: Focus on buildings with maturing construction loans and overleveraged condo-hotel conversions.
Distressed Deals Pile Up While Buyers Tap Out
More defaulted homes are hitting the market as owners run out of options and lenders shove them into foreclosure.
At the same time, investors are pulling back, spooked by tighter credit and slimmer margins, leaving a glut of bargains but fewer bidders.
💡 Investor Takeaway: Target homes in Florida, Texas, and Illinois in good school zones where big investors pulled back 30% or more
Bubble Implodes, Rates Spike, Distress Deals Brewing
The decade-long housing bubble left buyers stuck with overpriced properties as values stumble back toward reality.
Mortgage rates are spiking and lenders are tightening up, sending foreclosures and distressed listings back into play.
💡 Investor Takeaway: Target properties bought in 2021-2022 at sub-4% rates now facing refinancing into 7%+ mortgages.
Mortgage Fraud Soars in Q3 2025 as Defaults Hit Decade Highs
Mortgage fraud shot up to 36.2% in Q3 and purchase-loan defaults hit the highest level since 2010, exposing a busted lending system.
Banks are slamming the brakes, tightening underwriting and shrinking loan pipelines to avoid more toxic surprises.
💡 Investor Takeaway: Look Tor performing loan pools with stated-income and inflated-appraisal red flags.
Home Equity Peaks as Underwater Homes Spike Again
Home equity is riding high with the average homeowner sitting on roughly $300K, but underwater properties jumped 7% to 2.2 million in Q3.
That spike shows cooling prices and stubborn rates are leaving more borrowers upside-down.
💡 Investor Takeaway: Focus on markets where underwater properties increased 15%+ quarter-over-quarter.
Regulators Let Banks Hide Loan Losses with CECL Tweak
Regulators just tweaked CECL to let banks strip modified loans from their loss reserves, shoving real bad debts off the books.
That twist inflates capital ratios and masks non-performing loans, giving a false glow to shaky balance sheets.
💡 Investor Takeaway: Search for small-sized banks where loan loss reserves suddenly dropped while loan modifications went up.