CNBC July Residential Market Update

 

THE DATA: (Nationwide Stats)

Inventory up 27% for SFR

Prices up 1% YOY

42% of homes have a price drop on the market

THE TAKEAWAY: 

Its here. Inventory sky rocketing; 42% of homes with price drops. The tide has officially turned and I expect this trend will start to pick up speed. Buckle up. 

If you own multiple properties, I'd consider selling unless you are really confident in your particular area and/or see a value add potential. 

If you don't own, sit back and build up your cash. There will be many unique opportunities out there. 

For more information on Snohomish County Real Estate, we'd love to talk: 

Scott Weitz

Scott@weitzcommercial.com

T: 206.306.4034

Mortgage Delinquency updates

Mortgage Delinquency Explodes in 2025: What It Means for Investors and Homeowners

Below is an overview a recent Forbes article on increasing mortgage delinquencies: 

Mortgage delinquencies are surging at a pace that’s alarming both lenders and investors. 

According to May 2025 data from VantageScore, delinquencies have increased faster than any other category of consumer credit, suggesting growing financial strain among American homeowners.

Defaults have reportedly jumped more than 200% over the past six months. While many expected this to hit lower-income or subprime borrowers first, the spike is actually centered among middle-income homeowners—especially those holding adjustable-rate mortgages (ARMs), FHA loans, or VA loans. These borrowers are being squeezed by rising interest rates, inflated living costs, and stagnant wages.

Insurance costs are a key factor accelerating the problem. Homeowners insurance premiums in states like Florida, Georgia, and North Carolina have increased dramatically, rising over 20% between 2022 and 2024, with further hikes projected in 2025. For borrowers already stretched thin, the added cost has tipped many into delinquency. As a result, FHA and VA delinquency rates have climbed significantly in 2025, while conventional loan defaults remain near record lows.

Nationally, the overall mortgage delinquency rate rose to 3.2% in May 2025—up 16 basis points from the year before. But that headline number hides the deeper issue: early-stage delinquencies, especially among government-backed loans, are rapidly increasing.

Weitz - Obviously not a surprise if you read this blog with any regularity. To be clear, 3.2% of every mortgage is in some sort of default. 

Can you imagine if this trend continues and we get to 5%....that's a HUGE number. Even at 3.2%, I see major issues coming, but will continue to review the data and adjust opinions accordingly. For now, I think the smart money is sitting patiently. 

Scott Weitz

Scott@Weitzcommercial.com

Snohomish County Commercial Real Estate Advisor

Housing Inventory Returns to Pre-Pandemic Levels, Pressuring Sellers

Housing Inventory Returns to Pre-Pandemic Levels, Pressuring Sellers

Below is a summary of the recent 'Money Talks Article'. 

The U.S. housing market is shifting noticeably as home listings surge and sellers increasingly reduce prices. Inventory levels have risen for 19 consecutive months, with major metros like Denver, Austin, Seattle, and Dallas now showing housing supply numbers that rival or exceed pre-pandemic levels. Nationally, available inventory is roughly 30% higher than this time last year.

As a result, sellers are cutting prices at rates not seen in nearly a decade. In May, about 20% of home listings featured price reductions—the highest level in over nine years. In some markets like Phoenix, nearly 35% of sellers dropped their asking prices in June.

Homes are also sitting longer. The average time on market has stretched to 51–53 days, about six days longer than last year. This cooling trend is giving buyers more time and leverage. With mortgage rates stabilizing around 6.7%, more buyers are feeling confident. A recent Fannie Mae survey showed that 26% of buyers now believe it’s a good time to purchase—a notable increase and the highest level in three years.

Sellers are adjusting their strategies. While some are offering rate buydowns as an incentive rather than cutting the list price directly, others are delisting and relisting in hopes of better timing or improved presentation. These tactics reflect a changing environment where the balance of power has shifted more toward buyers.

In short, the market is cooling from the frenzy of 2021–2022. Buyers now have more options, more time, and greater bargaining power. Sellers, meanwhile, must price competitively or offer creative incentives to stand out.

This return to more normal conditions is welcomed by many in the industry, but it also presents new challenges. Understanding these trends is essential for anyone looking to buy or sell in today’s housing market.

Weitz Comment - If you read this blog,  this is a not a surprise whatsoever. Look for much more pressure on  sellers this Fall/ Winter. 

For more information on investing in Snohomish County Real Estate, contact us any time. 

Scott Weitz

Weitz Commercial

Scott@weitzcommercial.com

t: (206) 306-4034