🚨 Desperate Sellers Drop Prices by 23%
Builders abandoning sites while investors bail out at record pace
Home builders are walking away from half-finished projects as construction costs and loan rates crush their budgets.
Meanwhile, condo prices have crashed 10-23% in major cities, leaving towers half-empty and defaults piling up.
House flippers are getting hit too, with profits at pandemic lows while rehab costs spike through the roof.
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All of this is forcing lenders to dump loans into special servicing because properties can't even cover their debt payments anymore.
The panic is so widespread that nearly 30% of home sales are now desperate investors bailing out - the highest in over 20 years.
For anyone with cash ready, this distressed market could be a great buying opportunity.
In this edition of the AltReports:
🏗️ Housing starts crash to five-year low as builders abandon sites
🏢 Condo prices tank 23% from peak as towers sit half-empty
🔨 Flipping profits crater while fixer-uppers pile up unsold
⚖️ Special servicer queues spike as distressed loans flood in
🏠 Investor-owned homes hit 28% of sales—highest since 2001
Video of the Week: The Highest Cash Flow Real Estate NO ONE Talks About
Chart of the Week: Where active housing inventory for sale is up year-over-year
Podcast of the Week: 5 Rentals in Under 5 Years WHILE Working a Demanding 9-5
May Housing Starts Crash to Five-Year Low
Home building in May fell to its weakest since 2020, with single-family starts tanking and permits plunging.
Builders are pulling back as rising costs and expensive loans drain their budgets, leaving half-finished sites in limbo.
That creates a buffet of distressed projects and cheap land for anybody ready to pounce.
💡 Investor Takeaway: Start scouring stalled builds and distressed loans now to lock in bargain deals.
US Condo Market Blows Up with 10–23% Price Crash
The US condo market has blown up, with prices plunging 10% to 23% from their Aug 2021 peaks across 20 major cities from San Francisco to Miami.
An avalanche of new units, sky-high mortgage rates and buyers fleeing to suburbs has left towers half-empty and defaults stacking up.
That sets the stage for distressed investors to feast on fire-sale condos and bundles of bad loans waiting to be snapped up.
💡 Investor Takeaway: Have your cash and teams at the ready to swoop on fire-sale condos and bad-loan packages.
Flipping Profits Crater, Fixer-Uppers Pile Up
Flipping profits hit a low not seen since the pandemic as rehab bills spike and sale prices stall.
That pullback shrank flipping activity, stacking unwanted fixer-uppers back on the market.
Distressed-asset hunters now face deeper discounts but must move fast before other buyers swoop in.
💡 Investor Takeaway: Scout local auctions daily and snatch up super-cheap distressed homes before flippers flood the market.
Special Servicer Queue Spikes as Distress Hits
Lenders are dumping more loans into special servicing because properties can’t cover debt as rents fall and interest costs stay high.
That buildup signals that workouts and fire sales are about to go into overdrive.
Distressed investors should lock in their playbook now and have dry powder ready to pounce on steeply discounted deals.
💡 Investor Takeaway: Get your capital lined up with top servicers today so you’re first in line when the deals hit the market.
Investor-Owned Homes Now Make Up 1 in 4 Sales—Highest Since 2001
A record 28% of home sales are now investors dumping properties—the highest share in over 20 years.
That means more landlords are tapping out, likely spooked by falling prices, high rates, and stubborn vacancies.
Distress is bubbling under the surface, and savvy buyers should be circling for discounts, especially on stale rental inventory.
💡 Investor Takeaway: Track investor-owned listings in your market—when they blink, you buy.