A report from The News in Tennessee. "Prickly towers of horseweed have shot up almost five feet in the yard of 2814 Kenway Road. Green Hills is full of modest homes on spacious lots that have become prime targets for real estate investors to tear down, rebuild and sell. It was possible to double or triple investment in the upper echelons of Nashville’s boom housing market. Brian Layton couldn’t. His bankruptcy case has left a trail of million-dollar homes in visible states of disrepair across 12South and Green Hills. A spate of lawsuits has revealed tens of millions of dollars in debt spread out across a vast network of LLCs connected to Layton in various states of legal and financial trouble."

"Brian Manookian, an oft-disciplined attorney started following the debt-distressed properties in hopes of finding his own business angle. As legal proceedings continue to reveal an impossibly complicated web of debt and credit, Layton’s downfall has become something closer to schadenfreude for Manookian. 'I think about whoever might have the misfortune of buying these houses,' says Manookian. 'They’re polished turds.'"

The Pueblo Chieftain in Colorado. "When neighbors get together to talk about their new homes in Pueblo’s Villa Bella subdivision, the frustration is palpable. The homes are far from old. They were built by Richmond American Homes just one and a half years ago or less. Their costs ranged from nearly $400,000 to $600,000. Many of the homeowners noticed problems before closing, but they told the Chieftain they were warned by the builder's representatives they would face monetary fines if they didn’t close on the properties on time. Leticia Sandoval’s home had broken floor joists and a section of shingles blew off her roof. 'This is the worst purchase I ever made ― it was supposed to be my forever home but it is not going to be my forever home,' she said."

"Some of Villa Bella’s 60 homeowners have had special signs made that they installed in their front yards. The signs indicate that those residents feel the customer care is 'horrible' and urges others 'before you buy, come say hi.'"

Bisnow South Florida. "Changes to Florida state law requiring condo inspections and repairs are bearing down on unit owners, hitting them with unexpected bills that some can’t afford and raising fears that they will be forced to sell their homes. Local officials across South Florida are sounding the alarm about the potential for an exodus of seniors unless states and municipalities create programs to provide financial aid to condo owners on fixed incomes or modest salaries."

"'What you're going to see happen — and it's already begun to happen in the tri-county area — is that folks are selling out, and they have no choice,' Fort Lauderdale City Commissioner John Herbst said in an interview. 'Our senior citizens are essentially being pushed out of their homes because of decades of deferred maintenance and failure to adequately fund the reserves.' 'We’re looking for some kind of relief because, otherwise, we’re going to have a senior exodus out of our condos,' said Fred Nesbitt, the president of the Galt Mile Community Association, who represents owners of 36 high-rise condos and co-ops along a strip of oceanfront property in Fort Lauderdale. 'They plan to retire here, they’re paying their assessments, they’re paying their quarterly maintenance and things like that, but now they’re suddenly facing $40K, $50K or $60K assessments.'"

The Week on California. "San Francisco is a city of two realities. Heading into downtown displays a much less glamorous version of the city. San Francisco has been grappling with several societal ills for years, including a widespread drug addiction crisis. In 2019, the city had 'more drug addicts than it [had] students enrolled in its public high schools,' the San Francisco Chronicle reported, by a margin of more than 8,000 people."

From Hoodline. "California Capital & Investment Group recently acquired the One Concord Center, a Concord tower located in the Bay Area, for an undisclosed amount, marking yet another instance of the frailty currently characterizing the region's real estate market, especially considering the office tower was bought for 40% below its prior value. One Concord Center, a 369,000-square-foot office tower situated at 2300 Clayton Road, was purchased by CCIG for approximately $110 per square foot, marking a significant decrease from its pre-pandemic value. The Utah-based seller, Bridge Investment Group, had paid $70.45 million or $190 per square foot when they acquired the property from San Francisco investor Swift Real Estate Partners in 2017. This underlines the tumultuous state of the real estate market in the region. Data from Realtor.com indicates that an overwhelming 90.8% of San Jose metro residents have been browsing homes beyond their current location in the first quarter of 2023."

The Real Deal. "The tangled knot of debt around one of the biggest disasters in New York real estate history is one step closer to getting cut. A foreclosure lawsuit accuses Maefield Development and its CEO Mark Siffin of failing to repay a $750 million loan on 20 Times Square. The financing was securitized in a single-borrower commercial mortgage bond. Wilmington Trust, the trustee acting on bondholders’ behalf, filed the suit Monday in state court. It cited five different events of default, including failure to repay the loan by its May 5 maturity date."

"The setbacks put Maefield in the red on its myriad of loans. It defaulted on the $650 million leasehold loan that Natixis kept. The lender bought the leasehold at auction and handed management over to SL Green, ending Maefield’s owner/tenant relationship. However, sources told The Real Deal last year that the leasehold is 'virtually worthless.' The suit is the most dramatic development yet in what’s been a train wreck at the crossroads of the world."

The Washington Post. "All across the country, downtowns, office spaces and shopping centers are at risk of becoming ground zero for a new economic hazard: the urban doom loop. The fear is that a commercial real estate apocalypse could spiral out and slow commerce, wrecking local tax revenue in the process. Ever since the pandemic drove a boom in remote work, hubs such as New York and San Francisco have drawn attention for their empty offices in previously bustling skyscrapers. But many economists are even more worried about midsize cities that have fewer ways to offset the blow when a major company slashes office space, the sale price of a building craters, or a downtown turns into a ghost town."

"'Once those offices are empty, there are few alternatives and not a lot of life after hours,' said Stijn Van Nieuwerburgh, a professor of real estate and finance at Columbia University’s Graduate School of Business who is one of the authors of a paper that coined the 'urban doom loop' phrase. Midsize cities 'have a much bigger chasm to cross than what New York City has to go through. The situation is worse in those places with so little else in place.' He added, 'It is a train wreck in slow motion.'"

From Investing.com. "Mortgage data from two of Canada's largest banks have shown a trend of homeowners grappling with increased borrowing costs. Royal Bank of Canada, the nation's leading lender, revealed that as of July this year, 43% of its residential mortgages in Canada had an amortization period exceeding 25 years. This is a significant increase from just 40% last year and only 26% back in January. Mortgages with an amortization span exceeding 35 years have also increased. As recently as early last year, RBC did not offer such loans within their Canadian portfolio; today they account for nearly a quarter of their mortgage portfolio."

"Similarly, Toronto-Dominion Bank reported that almost half its Canadian mortgages now have an amortization period over 25 years - up from just one-third last year. TD too has witnessed a surge in loan extensions beyond three decades. Royce Mendes, an analyst at Desjardins notes that 'The big six Canadian banks had more than 20% of their mortgage portfolio with repayments greater than thirty years.'"

From Reuters. "Adler Group on Tuesday posted a drop in operating profit for the first half of 2023, citing the shrinking of its real estate portfolio and higher financing costs. Adler, one of Germany's biggest landlords, is fighting a liquidity crisis. The group's rental income fell to 108 million euros in the first six months of the year, compared with 131 million euros in the year-ago period. The real estate group said its portfolio devaluated by 1 billion euros, as of June 30, compared with 2022-end, mainly due to rising interest rates. 'We are experiencing value losses as everyone else in the market due to a significantly changed interest rate environment,' CEO Thierry Beaudemoulin said."

From News Corp."Rising interest rates are inflicting pain on stressed homeowners and investors, which could see a rise in distressed property sales this spring, according to new research by Finder. A whopping 39 per cent of Aussie mortgage holders – equivalent to almost 1.3m households – said they struggled to pay their home loan in August, according to Finder’s Consumer Sentiment Tracker. And two in five (40 per cent) of property investors are struggling to keep pace with soaring mortgage repayments and are worried they will have to sell their investment home. With thousands of fixed-rate mortgages starting to expire, repayments for many buyers have begun to bite, jumping by thousands of dollars a month."

"'Borrowers are experiencing a huge financial shock after a relentless climb in interest rates over the past year and homeowners weren’t coping,' Finder home loans expert Richard Whitten said. 'Many borrowers have already pulled back on all non-essential spending — they have no money left to contribute to their mortgage. They feel like they’ve got little choice but to sell up or lose their home.'"

"It comes as Victoria’s property market is primed for a record start to spring that could kick off one of the biggest selling seasons in history, which may be fuelled partly by owners struggling with rates. More than 3000 homes are scheduled to go under the hammer in the next three weeks in a buyer bonanza that’s starting with 1060 properties going to auction this week in one of the busiest ends to winter to date. 'There’s probably a proportion of those sellers who are people who have been hit hard by interest rates,' said PropTrack economist Anne Flaherty told the Herald Sun. While first-home buyers who made their move in the past two or three years were the 'most vulnerable' in this regard, she noted it was likely investment properties and family homes would also be among the forced sales. Ms Flaherty said with 'every reason' to expect auction numbers to continue to grow, late spring could become a 'real test of the depth of buyer demand' that could pause or even reverse home price growth in recent weeks."

Stuff New Zealand. "We have been investing slowly in property for about 20 years and have half a dozen properties. We have great tenants and are undercharging rent compared to the market in Wellington. They are all tidy properties. Our rates are now approximately $110 a week per property and insurance is near $100 a week. Now this old debt cannot be used for future interest deduction for tax purposes, this has added massive costs to successfully run these rental properties."

"As an example, for one property our interest costs are $485 a week. We calculated that our tax bill on a $360,000 loan, at 7%, is going to require $210 a week more once we reach 100% non-deductibility. So the total costs of holding this property will be $905 a week, and I haven't included maintenance or capital repayment of the loan. The rent is no longer covering the costs to hold this property, so if rent does not go up, we will sell up."

From Reuters. "Hong Kong private home prices eased 1.12% in July from June, the third monthly fall in a row, official data showed on Tuesday, as homebuyer sentiment was deterred by rising interest rates and a weak economic outlook. Home prices have retreated again since May after a short-lived bounce early this year from a 15% decline in 2022. Major developer Henderson Land said in its earnings statement last week the property market would be 'quite depressed' in the second half if the government does not propose any new measures because the downward trend for housing prices in the secondary market had 'become obvious.' A new home launch this month by another major developer CK Asset, owned by tycoon Li Ka-shing, at the lowest prices in seven years shocked the market and could intensify a price war in the financial hub, realtors said."

From Barron's. "China’s property developers are under duress again, re-igniting concerns about a debt crisis. But with a faltering economy and diminished confidence among households and companies, China debt watcher Charlene Chu, senior analyst at Autonomous Research, worries the ingredients are there for a broader financial crisis for the first time. How worried should investors be about Chinese debt levels?"

"Total credit outstanding is up 8.5 times since 2008; GDP is up 3.9. Debt has risen to a significant margin, well above its resources. And if growth is going to be slowing, the resources to repay the debt will get thinner and thinner. It’s interesting to see what is happening with household debt. People are prepaying. Chinese households have intuitively realized that they have hit the maximum amount of debt they can [handle]. Local governments are there too, especially if the central government is saying they have to work down this implicit debt. Local government debt didn’t exist in 2008, when it pushed through a 4 trillion renminbi stimulus. The real stimulus was that local governments could borrow for the first time; their debt went from zero to 90 to 100 trillion renminbi in 15 years."

"Is China headed to its own version of Japan’s lost decades? With a Chinese flavor, it is. China is a much bigger country with income levels much lower than Japan at the time and its demographic profile is deteriorating more rapidly. We are looking at a very difficult decade unless authorities can come out with something that is very aggressive on the structural reform side. One reason it’s so hard for China to move to a domestic-driven growth model is that they didn’t take the opportunity when things were going great to build out a comprehensive social safety net."

"Where’s the biggest disconnect you see in the market? People keep looking at this as a cyclical short-term problem and [think] China will get back to the growth path it was on, and everything will be fine. Those days are over. China is never going back to prepandemic growth levels. There are just too many structural issues. Then, layer on the demographics and it’s going to be impossible to get close to the growth rates of the past. People don’t understand that. It’s not clear China’s authorities fully understand that either as they keep emphasizing that it’s taken every other country time to rebound after reopening so people just need to be patient."