Soaring home sales and prices, flat forbearances, a canary in the CRE coal mine, where to find new opportunities, and some seemingly safe REITs.
In Today's News
Existing Homes Sales Soar by 24.7% in July
The National Association of Realtors said today that sales of existing homes have notched two straight months of sharp gains, including spiking nearly 25% from June to July. The median price also rose above $300,000 for the first time ever.
Why it matters: The trade group says this is no longer simply pandemic recovery but widespread boom times for house sales and that the desire for larger homes from stay-at-home workers will drive the market higher into the coming year.
Number of Loans in Forbearance Remains Flat
Black Knight (NYSE: BKI) reported today that the number of mortgages in active forbearance remained flat over the past week, with a 15,000 reduction among GSE mortgages offset by a 5,000 raise in FHA forbearances and a 10,000 increase among portfolio/PLS held loans.
Why it matters: While home sales soar, here's a sign the market is truly mixed. There are still nearly 4 million homeowners whose mortgage payments are deferred. Black Knight says that's 7.4% of all active mortgages and represents $833 billion in unpaid principal.
CBL Properties Bankruptcy Called the "Canary in the Coal Mine"
The planned Chapter 11 filing of one of America's biggest mall operators may just be the beginning, according to some legal eagles interviewed on the topic by National Real Estate Investor.
Why it matters: These seasoned bankruptcy attorneys expect mall operator filings to eventually follow retail bankruptcies, which are skyrocketing among major retailers. If that happens, that'll be one big canary falling over, taking a lot of real estate investment trust (REIT) payouts with it.
Today on Millionacres
Where to Find Inexpensive Development Opportunities
There's plenty of vacant land around that's ripe for new residential development. Underutilized industrial land, church land, and vacant land near golf courses, too.
Why it matters: Millionacres' Brad Cartier says some research and creativity, backed by liquidity and expertise, can be a recipe here for real estate investing success.
These 3 High-Yield REITs Still Look Safe
The coronavirus has proved to be a plague on many a dividend payout among REITs. Millionacres' Kevin Vandenboss shares his take on three issues that look like they can weather the storm.
Why it matters: REITs are often expected to be like what back in the day were called "widows and orphans" stocks: reliable, boring growth and income stuff with the emphasis on income. Here's some analysis of three that may still fit that bill.