Records fall in commercial real estate sales, new home sales stay high but price acceleration ebbs a tiny bit, why Realty Income is a buy for a lifetime, time to buy ahead of a healthcare REIT rally.
In Today’s News
Commercial Real-Estate Sales and Values Surge to Records
Investors purchased a record amount of commercial real estate in the third quarter, defying warnings that the COVID-19 pandemic would erode these property values and starve the industry of cash, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: Demand for apartment buildings, life-science labs, and industrial properties made up for a drop in office and shopping center sales. The pandemic recovery remains uneven in the CRE space.
Monthly New Residential Sales Surge in September
Sales of new single-family homes (SFHs) jumped 14% from August to September, according to figures released today by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau.
The Millionacres takeaway: SFH sales actually were down 18% from September 2020 but are still quite strong, supported by low interest rates and suburban and exurban demand, the National Association of Home Builders (NAHB) says in its look at the new housing starts report. And that’s despite the median price for a newly built home reaching $408,800.
U.S. Home Price Appreciation Is Cooling Off Ever So Slightly
U.S. home prices jumped 19.8% in August, the latest in a string of massive gains in the pandemic real estate market, Bloomberg reports today [subscription required], but something noteworthy just happened.
The Millionacres takeaway: The widely followed S&P CoreLogic Case-Shiller Index of property values only matched its jump from July, ending a streak of 14 straight months of accelerating price increases. Hey, that’s something.
Today on Millionacres
My Journey With Realty Income: Why You Should Invest
Our Matt Frankel has just turned the big 4-0 and made Realty Income (NYSE: O) his first real estate investment trust (REIT) investment well before reaching that venerable age. He explains here why he intends to stick with this real estate stock into his retirement years.
The Millionacres takeaway: With a nearly unmatched record of paying and raising dividends, Matt says Realty Income could be the best all-around dividend stock in the entire stock market. The company offers long-term investors a combination of income, growth, and predictability that is very tough to find anywhere else.
3 Reasons Now’s a Great Time to Invest in Healthcare REITs
While the pandemic may not be over, healthcare REITs have bounced back nicely in 2021, and in the coming years, they could become an even more solid investment. Our Maurie Backman shares why.
The Millionacres takeaway: Those looking to add REITs to their portfolios have plenty of options these days, including industrial REITs and data center REITs. But, Maurie concludes, keep an eye on healthcare REITs, especially as innovation and technology lead to positive changes within the sector.