Zombies still roam

Posted on February 19, 2026 by grim

From the Realtors:

Zombie Foreclosures Are Rising—These Midwest Metros Are Hardest Hit

Lurking behind a for sale sign could be a home sitting empty. Not because the homeowners already moved out but because the property is vacant due to foreclosure.

Nearly 1.4 million homes were vacant at the beginning of the year, according to ATTOM, a provider of property data and real estate analytics.

ATTOM released its first-quarter 2026 Vacant Property and Zombie Foreclosure Report, which found that out of the nation’s nearly 104.8 million residential properties, at least 230,401 were in the process of foreclosure (at the time of its report).

Out of those properties, at least 7,540 were considered “zombies”—meaning their owners had abandoned them before the end of the foreclosure proceedings.

The silver lining is that the zombie rate of 3.27% in the first quarter of 2026 is down slightly from 3.34% during the same time in 2025.
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ATTOM’s data found of the 27 metropolitan areas studied—meaning those that had at least 100,000 total residential properties and 50 or more properties in the foreclosure process that are vacant—the highest zombie rates were in Cleveland (9.9%); Baltimore (9.3%); St. Louis, MO (8.6%); Akron, OH (7.4%); and Indianapolis, IN (6.5%).
…
Overall, the states with the highest overall home vacancy rates were Oklahoma (2.4%), Kansas (2.4%), Alabama (2.2%), Missouri (2.1%), and West Virginia (2.1%).

Posted in Crisis, Economics, Foreclosures, Housing Bubble, National Real Estate | 80 Comments

The battle for inventory

Posted on February 18, 2026 by grim

From Zillow:

WSJ op-ed highlights consumer impacts at stake in battle over hidden listings

A new Wall Street Journal opinion essay argues that a legal dispute Compass initiated with Zillow turns less on monopoly power than on whether home listings should be widely visible to consumers. In the piece, business law professor Nicholas Creel describes Compass’s use of private listings as a system built on limiting access to housing information.

“Compass, the nation’s largest residential real-estate brokerage, has a pitch for home buyers: Sign with us, and you’ll see homes nobody else can,” the professor writes in the Journal. “The company maintains a growing inventory of ‘Private Exclusives’ — properties marketed only through its own platforms, invisible to anyone searching on Zillow, Realtor.com or competing portals. The implicit message is simple: If you want full access to the housing market, you have no choice but to come to us.”

He argues that the approach is not innovation but rather “manufactured scarcity designed to coerce consumers into a single brokerage’s ecosystem.”

The dispute centers on Zillow’s Listing Access Standards, which require that any home marketed publicly be placed on the multiple listing service and shared broadly within one business day. Compass sued over the standards, alleging Zillow was using monopoly power to undermine a competing model, but a federal judge recently rejected that argument. 

In a decision issued in U.S. District Court for the Southern District of New York, Judge Jeannette A. Vargas denied Compass’ request for a preliminary injunction, writing that the company had not shown Zillow possessed monopoly power — a ruling the professor says exposed deeper weaknesses in the case.

“To prevail on its antitrust claims, Compass must prove that Zillow is a monopoly in a relevant market. But what market, exactly?” the essay asks, describing online home search as “vast and fragmented,” with multiple platforms competing for users and consumers typically checking several sites.

Creel frames Zillow’s listing policy as rooted in broad consumer access. 

“Zillow’s policy is straightforward: If a listing appears anywhere online, it should appear everywhere online,” he writes. “That principle serves buyers by ensuring equal access to inventory regardless of which brokerage or search tool they use. Compass wants a court to override this policy not because it harms consumers, but because it interferes with a business strategy that benefits realtors at the expense of home buyers.”

The essay argues that limited listing visibility can disadvantage buyers by reducing transparency and competition. “By the time everyone else walks in, the best properties may already be under contract,” the professor writes of private listing periods, likening the system to “a private presale for preferred clients before opening the doors to the general public.”

Posted in Economics, Housing Bubble, National Real Estate, Unrest | 100 Comments

Ready for the shore

Posted on February 17, 2026 by grim

From Channel 6 Philly:

Shore summer rentals see early surge as travelers book ahead

With 14 weeks to go until Memorial Day, the countdown to summer is already driving interest at the Jersey shore, where real estate professionals say vacationers are booking rentals while winter weather still lingers.

Those in the shore real estate business say many people, weary of cold, ice and snow, are already planning a week or two by the beach to get through the winter months.

“I just got three calls this morning,” said Kenny Robinson, a real estate agent with Berkshire Hathaway/Fox and Roach in Margate.

Robinson said he is seeing early interest in summer rentals, a sign of a strong start to the season.

Local tourism experts noted that last year, many renters booked shorter stays and waited longer to commit.

That trend matched what Maria Kirk saw last summer. Kirk runs Shore Summer Rentals, a direct vacation booking website focused exclusively on the Jersey shore.

“Last year, it started out much slower. But by the time June arrived, most of my hosts were booked,” Kirk said.

This year, however, demand appears to be picking up sooner.

“This year already, we’re seeing an increase, where this time last year, it was a little less. This year, people are like – whether they didn’t come last year or not – they’re ready to come back. And our traffic’s been tremendous,” Kirk said.

Posted in Demographics, Economics, New Jersey Real Estate, Shore Real Estate | 102 Comments

Jersey market slows in January

Posted on February 16, 2026 by grim

From Insider NJ:

New Jersey Realtors January Housing Market Data

New Jersey’s housing market entered the year with more homes available for sale and a modest increase in prices compared to last January, according to housing market data released this week by New Jersey Realtors.

Statewide Market Highlights—Total Market

  • Median Sales Price: $517,250 (+1.6% year-over-year)
  • Closed Sales: 5,090 (-8.4%)
  • Pending Sales: 4,868 (-10.8%)
  • New Listings: 7,619 (-3.1%)
  • Homes for Sale: 14,717 (+5.3%)
  • Days on Market: 46 (+7%)
  • Percent of List Price Received: 100.2% (-.5%)

Single-Family Homes

  • Median Sales Price: $575,000 (+1.8%)
  • Closed Sales: 3,484 (-7.4%)

Townhouse/Condominiums

  • Median Sales Price: $408,000 (-5.1%)
  • Closed Sales: 1,120 (-14.3%)

Adult Communities

  • Median Sales Price: $365,000 (-2.1%)
  • Closed Sales: 458 (+2.5%)
Posted in Demographics, Economics, Housing Bubble, New Jersey Real Estate | 50 Comments

Investors still buying

Posted on February 15, 2026 by grim

From Cotality:

Investors maintain 30% market share entering 2026 

Cotality, a leading global property information, analytics, and data-enabled solutions provider, today released its latest update on investor activity in the U.S. Housing Market.  

Persistent housing unaffordability continues to sideline owner-occupant buyers while simultaneously fueling robust rental demand. At the close of 2025, investor activity remained stable, accounting for 30% of all single-family home purchases—a slight increase from the 29% share recorded at the end of 2024.  

“Fewer first-time homebuyers mean more people are staying in the rental market, and investors are responding to that demand,” said Thom Malone, Principal Economist at Cotality. “The current landscape differs significantly from the pandemic-era surge, which was fueled by rapid price appreciation. Now, while real estate is no longer the ‘hottest’ asset, strong rental demand and the ability to secure acquisitions below list price are keeping investors engaged even as traditional buyers retreat.”

Through late 2025, investor activity remained steady, averaging 80,000 to 100,000 monthly purchases—a pace consistent with 2024 levels. While overall sales volume has dipped since 2021, investors have proven far more resilient than traditional buyers. In just four years, the gap between owner-occupied buyers and investor purchases narrowed from 270,000 to 110,000 units. This resilience is largely attributed to the prevalence of all-cash offers, which allow investors to bypass elevated interest rates and secure deeper discounts.

The single-family residential market continues to be anchored by small (owning fewer than 10 properties) and medium-sized investors (10-99 properties), whose collective activity accounts for nearly one-quarter of all U.S. home purchases. While large (100–999 properties) and mega-scale investors (1,000+) command a smaller market share of approximately 5%, they remain a vital component by providing significant funds and helping set professional management standards in the industry.

Posted in Demographics, Economics, Housing Bubble, Politics | 39 Comments

Where’s my government cheese?

Posted on February 14, 2026 by grim

From the Courier Post:

Stay NJ payments roll out amid questions about the program’s future

The first payments for the Stay NJ property tax relief program are beginning to roll out.

But with a price tag of about $1.2 billion each year, and guaranteed funding only through June of this year, the program may see changes moving forward.
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Geared toward keeping seniors in New Jersey during their golden years, Stay NJ is designed to offer property tax rebates to those 65 and older with incomes of up to $500,000. It’s projected that 90% of eligible recipients have incomes of less than $200,000.
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Stay NJ checks are now being mailed to approximately 430,000 qualifying taxpayers who applied last year. The payments are to be distributed in quarterly installments at an average of approximately $637 for the first check.

The first quarterly payment began rollout Feb. 9. The next quarterly payment is scheduled to be mailed in mid-May. 
…
Stay NJ is not a guaranteed program for the long term. The New Jersey Department of the Treasury acknowledged in a release announcing the payments that the “availability of New Jersey’s property tax relief programs is subject to state budget appropriations.”

The budget for fiscal year 2026, which runs through June 30, includes $2,431,572,000 for ANCHOR, $239,300,000 for Senior Freeze and $280,000,000 for Stay NJ.

That isn’t the only money dedicated for Stay NJ. It’s actually the third and final tranche of funding needed to cover just the start of the program.

Posted in Demographics, Economics, New Jersey Real Estate, Politics | 37 Comments

Sales hit two year low in January

Posted on February 13, 2026 by grim

From CNBC:

Realtors report a ‘new housing crisis’ as January home sales tank more than 8%

High home prices, faltering supply and weaker consumer confidence in the economy all continue to weigh on the U.S. housing market. The chief economist for the National Association of Realtors, Lawrence Yun, is calling it “a new housing crisis.”

Sales of previously owned homes in January dropped a much wider-than-expected 8.4% from December to a seasonally adjusted, annualized rate of 3.91 million, according to the NAR. Sales were 4.4% lower than January 2025. That is the slowest pace since December 2023 and the biggest monthly drop since February 2022.

This count is based on closings, so contracts that were likely signed in November and December, when the average rate on the 30-year fixed mortgage didn’t move much before dropping slightly in January. That rate is now 6.1%, according to Mortgage News Daily. 

Regionally, sales fell across the nation month to month but were down the most in the South and West. 

“Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is the most affordable it’s been since March 2022,” Yun said in a release. “This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago. However, supply has not kept pace and remains quite low.”

But he also noted on a call with reporters that potential buyers are “still struggling,” and “renters are not participating in housing wealth.” He characterized the current market as a crisis because, “the movement is not happening. Americans are stuck.”

Inventory came down in January from December but was still up 3.4% year over year. There were 1.22 million homes for sale at the end of January, which at the current sales pace is a 3.7-month supply. A six-month supply is considered a balanced market between buyer and seller.

Tighter supply kept home prices in positive territory. The median price for a home sold in January was $396,800, up 0.9% year over year and the highest January price on record.

Posted in Demographics, Economics, Housing Bubble, National Real Estate | 62 Comments

Delinquencies rising, but it’s not so bad

Posted on February 12, 2026 by grim

From MarketWatch:

Mortgage delinquency rates in America’s lowest-income areas haven’t been this high since 2016

More homeowners — particularly those who live in lower-income areas — are struggling to make their mortgage payments, driving up delinquency rates to a 10-year high, new data show. 

The increase represents yet another distress signal coming from within the housing market.

Mortgage delinquencies rose sharply among homeowners living in lower-income ZIP codes in the fourth quarter of 2025, according to new data released Tuesday by the Federal Reserve Bank of New York.

Among people in all income groups who are more than 90 days late on their mortgage, borrowers in the lowest-income ZIP codes saw delinquency rates jump from about 0.5% in 2021 to 3% by late 2025. Mortgage delinquency rates were artificially low during the pandemic years, when households were receiving government stimulus payments and banks were offering relief programs to struggling borrowers, the Fed researchers said. 

But by the end of 2025, the delinquency rate among borrowers who live in the lowest-income areas had hit the highest level since 2016.

A homeowner is considered to be seriously delinquent when they are 90 days late on their mortgage payment. This can result in late fees and a drop in their credit score and can even lead to a foreclosure, which could ultimately cost them their home.

Mortgage delinquencies have not reached alarming levels — the overall serious delinquency rate was 1.3% in 2025, while during the 2007-09 recession, over 8% of borrowers were seriously delinquent on their mortgage payments — but there’s been a sharp increase from years past. 

“It’s no surprise that serious delinquencies have increased most among lower-income borrowers, in places where the unemployment rate has increased and where houses haven’t gained much in value and may have lost value,” Brad Case, chief residential economist at Homes.com, told MarketWatch. 

“What we’re seeing here is normal,” he added, “and doesn’t give us any reason to be concerned about the broader market.”

Posted in Demographics, Economics, Employment, Housing Bubble, Mortgages, National Real Estate | 36 Comments

NY Metro starting to crack?

Posted on February 11, 2026 by grim

From the Realtors:

America Slowly Tilts Toward a Buyer’s Market as Listings Pile Up in More Metros

1. Miami, FL

Months of supply: 11.5

January median list price: $500,000

2. Austin, TX

Months of supply: 10.5

January median list price: $455,000

3. Orlando, FL

Months of supply: 8.2

January median list price: $415,000

4. Tampa, FL

Months of supply: 7.9

January median list price: $399,727

5. New York, NY

Months of supply: 7.7

January median list price: $749,000

6. Las Vegas, NV

Months of supply: 7.4

January median list price: $465,000

7. Riverside, CA

Months of supply: 7.4

January median list price: $585,000

8. Nashville, TN

Months of supply: 7.3

January median list price: $525,000

9. Jacksonville, FL

Months of supply: 7.2

January median list price: $375,000

10. Atlanta, GA

Months of supply: 7.1

January median list price: $400,000

Posted in Housing Bubble, National Real Estate, New Jersey Real Estate, NYC | 80 Comments

Rich people drive home prices, not supply

Posted on February 10, 2026 by grim

From Fortune:

We may be looking at the housing affordability crisis all wrong. Higher earners are driving home prices, not lack of supply, researchers say

According to a recent note written by UC Irvine PhD student Schuyler Louie along with San Francisco Fed researchers John Mondragon, Rami Najjar, and Johannes Wieland, average income growth “relates strongly” to house price growth.

“However, there is almost no connection between average income growth and growth in housing supply,” they added. “Instead, housing supply growth has a strong positive relationship with population growth. In fact, almost all metro areas saw housing units grow faster than their population—even in expensive residential markets like Los Angeles or San Francisco.”

That challenges deeply ingrained notions that NIMBYism, red tape, and politicians who favor rent controls over new construction are worsening the housing affordability crisis. 

Meanwhile, California’s pricey housing markets have been held up as a prime example of these trends and often contrasted with those in Texas, where homes are more affordable. 

To be sure, California is expensive to live in, fueling homelessness and migration out of the state. But given that supply was not a factor, the researchers took a closer look at how differences in demand affect home prices.

Drawing on data going back to the mid-1970s, they pointed out that house prices and median income tracked each other closely until 2000. But after that, home price growth far surpassed incomes.

“This research indicates that regulatory reforms may have limited impact on housing affordability and that   differences in housing supply constraints are not the fundamental drivers of differences in housing dynamics across metro areas,” they said.

Posted in Demographics, Economics, Housing Bubble, National Real Estate | 61 Comments

More of the same in 2026

Posted on February 8, 2026 by grim

From the Street:

J.P. Morgan predicts what’s next for mortgage rates, housing market

If you’re hoping for a 3% mortgage and bargain‑basement prices, J.P. Morgan’s 2026 housing outlook suggests you may be waiting a long time. 

The bank expects 30‑year fixed mortgage rates to “stay elevated at 6+%” in 2026, even if the Federal Reserve begins easing policy later this year, according to J.P. Morgan Global Research.

At the same time, U.S. home prices, which have nearly doubled over the past decade, are projected to “stall at 0% nationally in 2026,” meaning prices flatten on average rather than fall outright.

Here’s how J.P. Morgan thinks the mortgage‑rate picture plays out next year.

  • 30‑year fixed mortgage rates: Expected to remain above 6% in 2026, even with potential Fed cuts.
  • Adjustable‑rate mortgages (ARMs): Could “tick downward if the Fed decides to ease, thereby making homes more affordable.” 
  • Builder buydowns: Homebuilders “are continuing to offer rate buydowns — in which they pay a sum upfront to help lower the buyer’s mortgage rate — in a bid to clear their inventory.”
Posted in Mortgages, National Real Estate | 48 Comments

HODL!

Posted on February 5, 2026 by grim

From CNBC:

A surprising share of homeowners have high mortgage rates. Here’s the breakdown

The share of U.S. homeowners with high rates on their mortgages has jumped sharply in just the last few years. 

That’s having a marked impact on the refinance market and a somewhat more muted impact on home sales. Rates have been front and center in the debate over how to improve home affordability — and for good reason. 

In 2022, after mortgage interest rates hit more than a dozen record lows, sparking a refinance bonanza, barely 10% of homeowners had 30-year fixed mortgages with rates above 5%. Just four years later, that share has jumped to over 30%, according to ICE Mortgage Technology. About 20% of borrowers have mortgages with a rate over 6%.

Home sales have been less than robust over the last few years, with the National Association of Realtors reporting a historically low 4.06 million sales last year, basically unchanged from 2024. This, after hitting a 15-year high of 6.12 million home sales in 2022.
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Applications to refinance a home loan are now about 120% higher than they were one year ago, according to the Mortgage Bankers Association. 

As for home sales, the last four years were characterized by the so-called rate “lock-in” effect, meaning potential sellers didn’t want to give up their historically low rates. They therefore put off moves that they might otherwise have wanted to make. 

Entering 2025, there were roughly 39 million homeowners with an interest rate below 5% and roughly 12 million with an interest rate below 3%, according to Walden.

“If you look at how those borrowers behaved last year, only about 6% of those folks gave up those low rates, either through a refinance to pull equity out of their home or through the sale of their home. Close to 95% of homeowners held on to those rates tight,” he said.

Posted in Mortgages, National Real Estate | 292 Comments

NJ leads the nation

Posted on February 4, 2026 by grim

From ROI-NJ:

N.J. home price surge bucks national trend of price growth hitting softest rate since Great Recession

Cotality, a provider of property information, analytics, and data-enabled solutions, released its Home Price Index for December 2025 data Feb. 3, revealing national housing growth continues to cool along with the weather. 

In December, annual price growth slowed to just 0.9% — one of the softest rates since the post-Great Recession recovery. This indicates that the market is in a rebalancing phase where strong economic and housing fundamentals are necessary to support local housing demand.

Even as national growth softens, the Midwest and parts of Northeast remain strong due to their relative affordability, diversified job markets and hybrid work dynamics. States such as New Jersey (+5.5%), Illinois (+5.4%), Nebraska (+5.4%), and Connecticut (+5.1%) are among the nation’s strongest performers, with markets like Newark, Allentown, Pa., and Chicago recording gains that run counter to the broader cooling trend.  

New Jersey was one of seven states that reached new high home price growth as of December. The others were Pennsylvania, Delaware, Nebraska, Louisiana, Indiana and Mississippi.

“We are seeing a significant departure from the rapid surges of recent years; while the upward pressure on prices remains, the momentum has moderated enough to suggest that the market is finally becoming more navigable for prospective buyers,” said Cotality Chief Economist Dr. Selma Hepp.

Negative home price growth is dominating the South and the West — including Florida, Texas, Colorado, Washington D.C., Hawaii, Arizona, Utah, Oregon, and California — reflecting the pressure of higher inventory levels and moderating in-migration in markets that previously saw rapid expansion.  

Posted in Demographics, Economics, Employment, Housing Bubble, National Real Estate, New Jersey Real Estate | 138 Comments

Sorry about your job

Posted on February 3, 2026 by grim

From NJ1015:

Nearly 2,000 layoffs announced in New Jersey to start 2026

New Jersey has started 2026 with almost two-thousand notable layoffs, revealed by nine employers, so far.

Once giant retailer, Macy’s announced a combined 89 layoffs at three New Jersey locations — Paramus, Ramsey and Livingston.

Both the Ramsey store and the Livingston store, an anchor at the struggling Livingston mall, will be closing entirely, while one of the brand’s Paramus locations is moving.

Macy’s would be left with roughly 26 locations in New Jersey.

Similarly, T-Mobile USA has announced a total of 78 layoffs across New Jersey between April and September. The cell phone service provider that is based in Washington State.

Easily the largest contributor to the grim start of layoffs has been Amazon, with several New Jersey locations impacted.

New Jersey started 2026 with almost two-thousand notable layoffs, revealed by nine employers in the first month.

Posted in Demographics, Economics, Employment, New Jersey Real Estate | 118 Comments

The Bank of Mom and Dad Just Went Ultra-Luxury

Posted on February 2, 2026 by grim

From Yahoo Finance:

How $6T In Inherited Wealth Is Transforming the Luxury Real Estate Market

As the great wealth transfer shifts from a theoretical forecast to a tangible economic force, demand for luxury real estate is increasing.

An estimated $6 trillion was transferred intergenerationally in 2025, primarily from the silent generation and baby boomers to their heirs, Realtor.com reported. The massive liquidity event is changing market dynamics for high-end real estate, creating a class of buyers who are insulated from the pressures of the broader housing market.

An estimated $124 trillion will transfer through 2048, according to a December 2024 report by Cerulli Associates.

“For inherited wealth, real estate is less about chasing returns and more about preserving value across generations,” Realtor.com senior economist Anthony Smith said.

That’s the sentiment that’s driving a surge in the $10 million-plus ultraluxury segment.

“Where typically someone aged 30 to 45 would afford a $3 million maximum, inherited wealth allows them to enter the $10 million-plus bracket immediately,” Manhattan broker Lisa Lippman said.

The influx of inherited capital is concentrated in specific “legacy” markets and lifestyle destinations, Coldwell Banker agent Cara Ameer told Realtor.com.

Heirs are not just buying properties — they are upgrading their lifestyles. Real estate agents in Miami and Palm Beach, Florida, report that beneficiaries often follow a specific pattern.

They upgrade their primary residence, moving from rentals or smaller condos to estates valued at $10 million or more, or they purchase second homes in ski towns like Aspen, Colorado or international hubs like Italy and Dubai.

“Many of them view luxury real estate here as one of the safest tangible assets — especially in markets like Palm Beach where inventory is limited and long-term value is well protected,” Steven Presson, an agent with Corcoran in Palm Beach, told Realtor.com.

Posted in Demographics, Economics, Housing Bubble, National Real Estate | 91 Comments