5 at 5: Your Daily Digest for Real Estate Investing, 12/22/2020

Home sales slip, the future of cities, Super Saturday wasn’t everything, two retail REITs to consider now and our predictions for 2021.

In today’s news

US Home Sales Slip in November after 5 Monthly Profits

Home sales declined in November as the supply of property for sale fell to new lows. The latest sign of strong mid-year economic momentum is waning in the final months of 2020, the Wall Street Journal reports.

Why It Matters: While demand is still strong, this decline could be the first sign of more as the economy continues its battle against the pandemic. But the Dip also as a WSJ piece [subscription required] indicates that interest rates are at historic lows and that supply has hit its lowest level since 1982.

Cities don’t toast: But we have to worry enough to save them

The pandemic will pass, but many fear that our collective response to COVID-19 has finally devastated the urban economy.

Why It Matters: This New York Times Statement [subscription required] Contains some interesting arguments as to why cities remain indispensable and what can be done to ensure their vitality, including variations on topics we touched on like ghost kitchens and repurposing empty office and retail space.

Super Saturday not so great, especially in COVID hotspots

CNBC reports that on the last Saturday before Christmas, customer traffic in stores was down nearly 41% year over year – and that was still not as bad as it was on Black Friday. But there were some bright spots.

Why It Matters: Despite reports of shelves being emptied by gift buyers in some locations, this is an overall very difficult season for retailers and commercial real estate operators who depend on the success of their tenants. The harshest winter we’ve seen in a long time is just beginning.

Today on Millionacres

2 retail REITs for immediate purchase

Millionacres’ Matt Frankel explains why Tanger Factory Outlet Center (NYSE: SKT) and Seritage Growth Properties (NYSE: SRG) are stocks that could take investors on a roller coaster ride that ends on the high side.

Why It Matters: Matt points out that the end of the pandemic should certainly be a tailwind for Real Estate Investment Trusts (REITs), but there is still some uncertainty preventing this subsector from reaching pre-pandemic price levels to reach. Choose wisely.

Real estate forecasts for 2021: what can we expect?

A team of Millionacres writers made some bold predictions early in 2020. They fearlessly rethink what they saw then and venture into opinions about what the coming year will mean for real estate investors.

Why It Matters: Read up on topics like retail store closures, evictions, mortgage rates, venture capital opportunities, and more as we all begin to rethink our strategies for investing in an economy that we should (hopefully) recover from deadly pandemic.