Demand destruction on an epic scale, after the price explosion. And inventories are piling up. 3 US states register high share of ‘seriously underwater’ mortgages

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It boils down to this: In terms of condos, sales that closed in May fell further and hit the lowest point in the data, along with Lockdown May 2020, seasonally adjusted; supply spiked to the highest level since the Housing Bust.

In terms of single-family homes, sales inched up, but barely, and remained at historic lows, and below May 1995, seasonally adjusted; supply spiked to the highest level since 2016, according to data from the National Association of Realtors today.

A Condo Bust is unfolding.

Condo sales, which have been careening lower all year, dropped further in May to a seasonally adjusted annual rate of 360,000 condos, the lowest in the data going back through 2012, along with Lockdown May 2020. Sales were down by 38% from May 2019 and by over 50% from May 2021. Demand destruction on an epic scale, a result of prices having exploded in recent years far beyond what the market can bear (historical data from YCharts):

https://wolfstreet.com/2025/06/23/condo-sales-drop-to-lowest-in-the-data-supply-highest-since-housing-bust-single-family-home-sales-below-1995-supply-highest-since-2016/

Louisiana, Kentucky, and Mississippi topped the list of states with the highest share of “seriously underwater” mortgages—properties with loan balances exceeding their market value by at least 25 percent—real estate analytics company ATTOM said in a June 20 statement.

https://www.zerohedge.com/personal-finance/3-us-states-register-high-share-seriously-underwater-mortgages-report