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Today: Builders are cutting prices more often than existing-home sellers for the third straight quarter, six of the top 10 new-construction metros are in the Carolinas, and CMBS distress rates hit an all-time high of 8.89% in July with $37 billion in hard maturities due by year-end.
Builder price cuts now outpace existing-home sellers. Realtor.com's Q2 New Construction Quarterly report finds 20% of new-build listings took a price reduction versus 18.6% of existing homes, the third consecutive quarter builders have been more aggressive on pricing. The new-home premium widened to 10.3% (from 8.2%), but that reflects existing-home prices falling 2%, not builders raising sticker prices. For Richland County agents: if you have buyers on the fence between resale and new construction in Northeast Columbia or Chapin, builder concessions are real and growing. Push for closing-cost credits and rate buydowns on top of listed reductions. Realtor.com Research
67% of new-construction demand is coming from out of town. Views on new-build listings are overwhelmingly from outside the listing's metro area, concentrated in affordable Southern markets. Columbia fits this profile. If you are listing new construction in Lexington County or Blythewood, your buyer is statistically more likely to be relocating from a higher-cost market than shopping locally. Tailor your marketing to relocation keywords and out-of-state search portals. Realtor.com Research
Six of the top 10 new-construction metros are in the Carolinas. Charleston ranks #1 nationally (score 84.7/100) with strong inventory, pricing, sustainability, and demand metrics. The report attributes the South's dominance to available land, lower costs, permissive zoning, and builder-friendly codes. Columbia is not in the top 10 but benefits from the same structural advantages that put Charleston, Greenville, and Charlotte on the list. Builders active in those markets are also active here. Watch for spillover demand as the top-ranked metros get more competitive. Realtor.com
New home sales dropped double digits nationally in the latest release; mortgage rates ticked up for a third consecutive week. Rates remain above year-ago levels. The Iran conflict remains the primary geopolitical driver keeping rates elevated; a sustained resolution is the "clearest path to a lower rate environment." For Columbia sellers: price to the current rate reality, not the rate environment you wish existed. Buyers who are out today are rate-sensitive and negotiation-ready. Realtor.com Research
REITs signal early-cycle expansion. Principal Asset Management's Rich Hill says listed REITs are up 60% since their October 2023 trough and have crossed prior cycle highs, triggering an expansion signal. Private CRE valuations have been positive for eight consecutive quarters. Hill's thesis: CRE cycles last 16-18 years, recoveries about two years, and expansions about 12 years. If this framework holds, commercial real estate is in the early innings. For Columbia investors eyeing multifamily or retail acquisitions: the public markets are saying the worst is behind us. Underwriting to current cap rates with a 12-year expansion horizon changes your return modeling materially. Commercial Observer
The U.S. housing mismatch matters more than the headline shortage. Hill frames the "5-8 million homes short" narrative as mathematically true but misleading. The real problem is a mismatch: too many homes of certain types in some markets, not enough of others elsewhere. For Columbia developers: the opportunity is not just building more units. It is building the right units. Midlands inventory is thin on starter homes and mid-density product near employment centers. Luxury single-family in outer suburbs is not where the unmet demand sits. Commercial Observer
CMBS distress hit an all-time high of 8.89% in July. Of $65 billion in CMBS loans maturing by year-end, $37 billion are hard maturities with no extension options. 39% of the year's hard maturities fall in Q4. Loss severities are increasing. Trepp calls it "specific pockets of refinance pressure" rather than systemic risk; others call it "adjacent to Chicken Little." For Columbia commercial brokers: distressed CMBS-financed properties coming to resolution in Q4 could present acquisition opportunities, particularly in office. Watch special servicer disposition lists. New CMBS origination is strong ($76.2 billion YTD), heavily weighted toward single-asset, single-borrower deals, which means refinancing terms are available for well-positioned assets. Commercial Observer
Title insurance waiver proposals are not the affordability fix they claim to be. HousingWire analysis argues that proposals to waive title insurance on "low-risk" refinances would benefit established, higher-income homeowners (not first-time buyers), thin the risk pool, and raise costs for everyone else. Title premiums represent roughly 42 basis points (bps) of home value over the life of a loan, compared to property taxes (932 bps), mortgage interest (904 bps), and agent commissions (560 bps). The implied risk exposure on refinances alone runs $100-500 billion annually. For Columbia closing attorneys and title agents: monitor this debate, but the immediate compliance impact is zero. If federal policy changes, the effect on your book will depend on your refinance volume mix. HousingWire
Home Equity Investment (HEI) regulation is moving forward. Illinois adopted a product-specific HEI framework this summer; a Senate bill from Sen. Jeff Merkley seeks to classify HEIs as residential mortgages at the federal level. Point's deputy general counsel warns that regulatory uncertainty is driving lawsuits. For SC practitioners: HEIs are not yet a high-volume product in the Midlands, but if federal classification as residential mortgages goes through, MLOs will need to be involved in origination and TRID-style disclosures will apply. Keep this on your radar for 2027 compliance planning. HousingWire