Your Daily Digest for Real Estate Investing, 11/19/2020

Home sales and prices are still soaring — and may keep it up, a possible new homeowner tax credit, a grim holiday retail season but some promising investments still there.

Today on Millionacres

Home Sales, Prices Continue Spiking as Mortgage Rates Hit Another New Low

The “best of times and worst of times” scenario continues in the American residential real estate market, with sales surging amidst an epic pandemic that’s surging itself.

Why it matters: While it’s a great time to sell a home, for the most part, it makes it harder for real estate investors to find a deal. That won’t be getting any easier if this sales pace continues, as the National Association of Realtors (NAR) predicts.

Home Prices and Housing Market Predictions for 2021

Despite the economic challenges 2020 brought, housing has had a banner year: Mortgage rates bottomed out, buyer demand surged, and home prices responded accordingly.

Why it matters: Millionacres’ Aly Yale says while there’s no telling the future, there are some glimpses of what housing may look like in the new year, which can help guide investing strategy. She shares some here.

How Investors Can Capitalize on Biden’s New Homeowner Tax Credit

President-elect Joe Biden is proposing the First Down Payment Tax Credit, a refundable, advanceable credit worth up to $15,000 for qualified first-time homebuyers. Biden’s intent is to make that money available when buyers seek to purchase a home; they won’t have to wait until they file a tax return to get it.

Why it matters: Millionacres’ Maurie Backman explains why this credit (if it becomes a reality) may have its biggest impact in helping new homeowners become investors themselves with the financial head start.

Will Rising COVID-19 Cases Kill Retail Profits This Holiday Season?

It’s clear the pandemic is not letting up, and while some states are beginning to impose added restrictions, the situation is unlikely to improve dramatically during the holidays.

Why it matters: Here, Maurie points out that even a modest cutback on in-person retail shopping could have negative consequences on an already-battered retail sector and the commercial real estate they support.

2 Retail REITs to Buy Right Now

For intrepid types who believe the world will eventually move past the coronavirus, there’s an opportunity to buy great companies while most investors are still largely fearful. Federal Realty Investment Trust (NYSE: FRT) and STORE Capital (NYSE: STOR) are two retail-focused REITs, or real estate investment trusts, worth looking at right now.

Why it matters: Millionacres’ Reuben Gregg Brewer explains why these two are possible hidden gems in the retail apocalypse. His reasoning can help you find some more of your town, too.

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