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Big dollars chase residential deals, more retail pain ahead, CFPB pitches foreclosure ban, 10 hot metro markets, and three promising multifamily REITs.
In Today's News
A bidding war broke out this winter at a new subdivision north of Houston, The Wall Street Journal reports today [subscription required]. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.
The Millionacres takeaway: In this case, it was Fundrise, the online property-investing platform, that paid D.R. Horton (NYSE: DHI) well over what the builder had expected for the 124 rental homes. That's serious competition for young couples or empty nesters trying to buy in many places but good news for investors who can capitalize on that new trend.
Although the pace of store closures has slowed from its 2019 peak, don't expect the reprieve to last long, CNBC says today, citing a new UBS (NYSE: UBS) report that suggests America still has far too much retail space per capita.
The Millionacres takeaway: The reality that brick-and-mortar retail is going to just continue to decline is something that commercial real estate investors will need to consider in decisions of all kinds in the immediate future.
The Consumer Financial Protection Bureau (CFPB) today released a notice of proposed rulemaking today that would amend Regulation X to provide a special pre-foreclosure review period prohibiting servicers from starting foreclosures until after Dec. 31, 2021.
The Millionacres takeaway: HousingWire says the bureau cited concerns about a possible wave of foreclosures that could rise when forbearance agreements expire later this year, and it's the latest in the CFPB's escalation of protective measures now that a new administration is in place.
Today on Millionacres
It's getting tougher -- and pricier -- for investors to find homes to buy for renting or flipping. The obvious effects of low supply and high demand have been particularly pronounced in the 10 metropolitan areas laid out in this piece by our Maurie Backman.
The Millionacres takeaway: Maurie also points out that what goes up might soon come down, especially if interest rates are what goes up first. Really hot markets might be where home values and prices fall first. Buyer beware.
Many apartment REITs (real estate investment trusts) have performed quite well recently, and for good reason -- the pandemic didn't have nearly as devastating of an effect on multifamily housing as many experts had feared. Even so, there are some great apartment REITs that are still trading for nice discounts compared with their pre-COVID-19 highs.
The Millionacres takeaway: Our Matt Frankel looks at three REITs with different markets and concentrations but similar long-term prospects. And he puts the emphasis here on long term.
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