⚠️ Delinquencies Could Break 2008 Records
The worst is yet to come, according to Fitch
Strap in for a rollercoaster ride through this week's real estate rumbles, where the drama outshines even the most gripping reality TV.
First stop: the office market's apocalypse, where delinquency rates are set to soar past the gloomy days of 2008.
It's not just a downturn; it's a nosedive into uncharted depths, with Fitch waving red flags like a bullfighter.
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Switching scenes, we find the housing market boogying back to 1978, when disco was hot and home sales were not.
Buyers are ghosting sellers like bad dates thanks to stubbornly high mortgage rates.
Meanwhile, U.S. banks, dizzy from their commercial real estate love affair, might soon face Moody's music, hinting at a downgrade dance-off that could ripple through the financial sector.
And when you thought it couldn’t get more festive, foreclosure activity is on the rise again, especially in sunny states like Florida, California, and Texas.
In this edition of the AltReports:
🔥 Crisis Climax
📉 Debt Downturn
💥 CRE Concerns
🛑Crippled Sales
📈 Foreclosure Frenzy
Video of the Week: Agents Are Being Wiped Out By The Housing Crisis
Chart of the Week: Home Prices Continue To Climb
Podcast of the Week: Redfin CEO: Housing To See Major Price Cuts
Fitch Ratings might as well be a doomsday prophet for the office CRE market.
They're calling for a delinquency deluge in commercial mortgages that'll make 2008 look like a minor inconvenience.
Thanks to the work-from-home revolution, demand for office space is tanking faster than you can say "Zoom meeting”.
Fitch: Office Loan Delinquencies Will Surpass Global Financial Crisis Levels
Fitch Ratings has forecasted that office loan delinquencies are set to rise through the end of 2023 and into 2024.
With everyone working from their sofas, delinquencies on office-backed loans are predicted to climb higher than in the scary days of the global financial crisis.
Get ready for ghostly office spaces and strict lending conditions through 2024.
Moody's Could Downgrade 6 U.S. Banks Over CRE Exposure
Moody's is eyeballing six major U.S. banks, thinking about hitting their credit ratings with a downgrade hammer thanks to their cozy relationship with the shaky commercial real estate market.
Banks like Bank of New York Mellon and U.S. Bancorp might need to brace for impact as the economic storm brews and interest rates do their thing.
Housing Market Recession Hits So Hard Existing Home Sales Fall to 1978 Levels
Existing U.S. home sales have plummeted to their lowest level since 1978, a stark sign of the market’s recessionary trends.
Sales plummeted by a whopping 15.3% last year, hitting a pathetic 3.96 million homes sold in September 2023.
With anemic housing stocks and interest rates on stilts, it's a miracle that anyone's buying or selling.
U.S. Foreclosure Activity Sees a Monthly Increase in May 2024
In May 2024, U.S. foreclosure activity increased by 7% compared to the previous month and 14% compared to the same month last year.
The analysis highlights that foreclosure starts were up by 4% from the prior month, and completed foreclosures escalated by 38%.
Florida, California, and Texas had the highest foreclosure rates.