Top Real Estate News for Wednesday, Nov. 10, 2021: Foreclosures Sink; Prices Soar
Foreclosures have declined despite moratoriums and pandemics
When the eviction and foreclosure moratoria expired in August, it was expected that millions of Americans who were in a state of mortgage or rental default would face trouble. Motley Fool employee Liz Brumer-Smith explains that while many await a spate of new foreclosures, the latest data shows just the opposite: foreclosures have declined.
Bottom line: For most homeowners, tenants, and many investors, this is a positive sign that indicates the strength of the housing market. For investors looking for good deals on flips and rentals, maybe not so much.
This crowdfunded REIT plans to go public in 2022
Modiv has announced that it will aim for a direct listing next year. The Real Estate Investment Trust (REIT) would be the first to be built via crowdfunding and listed on a stock exchange.
Bottom line: Now is a good time to think about it, as Modiv offers a unique combination of a largely investment-grade commercial real estate portfolio and the rising value of crowdfunding.
Key inflation metrics hit 30-year highs
The U.S. Department of Labor said inflation had hit highs not seen in three decades, with the consumer price index rising 6.2% from last October to last month, the largest year-on-year increase since 1990.
Conclusion: The wage increases are diminished by the faster rising prices for food, vehicles and fuel as well as accommodation. The real estate impact could soon be felt in higher mortgage rates, construction costs and more, which has an impact on both affordability for many potential homebuyers and overall confidence in the sector.
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House prices continue to rise across the country
The National Association of Realtors (NAR) announced today that the average sales price of existing single-family homes increased in nearly every market it measured in the third quarter, up 16% nationwide to $ 363,700.
Conclusion: The NAR’s chief economist expects higher mortgage rates and rising inventories to slow the pace over the next year. Single-family home (SFR) prices have also skyrocketed, and investors should consider how this can positively affect the prospects for these large SFR buyers and owners.
Tempur Sealy expands domestic production
Tempur Sealy International (NYSE: TPX) says it is expanding its U.S. manufacturing capacity to address supply chain issues that cost it an estimated $ 200 million in third-quarter sales this year.
Bottom Line: While stakeholders, from the president down, hope the massive infrastructure bill will help disentangle the supply chain, this mattress maker’s strategy of not waiting could be widely replicated. This is good news for the local workforce and for the REITs and several other prospective real estate buyers who would provide the land and buildings for these facilities.
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