Home sales slip, the future of cities, Super Saturday was not all that, two retail REITs to consider now, and our predictions for 2021.
In Today’s News
Home sales slipped in November as the supply of properties for sale fell to a new low, the latest sign strong economic momentum in the middle of the year is easing in 2020’s final months, The Wall Street Journal reports.
Why it matters: While demand is still strong, this dip could be the first sign of more to come as the economy continues its struggle against the pandemic. But the dip also, as the WSJ piece [subscription required] points out, comes as interest rates are at historic lows and supply is at its lowest point since 1982.
The pandemic will pass, but many fear that our collective response to COVID-19 may have ravaged urban economies for good.
Why it matters: This New York Times opinion piece [subscription required] lays out some interesting arguments on why cities remain essential and what can be done to ensure their vitality, including variations on themes we’ve touched on, such as ghost kitchens and repurposing empty office and retail space.
CNBC reports shopper traffic to stores on the final Saturday before Christmas was down nearly 41% from last year — and that still wasn’t as bad as Black Friday. But there were some bright spots.
Why it matters: Despite reports of shelves emptied by gift buyers in some locations, overall this is a very tough season for retailers and the commercial real estate operators who depend on their tenants’ success. The toughest of winters we’ve seen in a long time is just getting underway.
Today on Millionacres
Millionacres’ Matt Frankel explains why Tanger Factory Outlet Centers (NYSE: SKT) and Seritage Growth Properties (NYSE: SRG) are stocks that could take investors on a roller coaster ride that ends up on the high side.
Why it matters: Matt points out that while the end of the pandemic should certainly be a tailwind for real estate investment trusts (REITs), there’s still quite a bit of uncertainty preventing this subsector from reaching pre-pandemic price levels. Choose carefully.
A team of Millionacres writers made some bold predictions as 2020 dawned. Undaunted, they revisit what they saw then and venture opinions about what the year to come will hold for real estate investors.
Why it matters: Check out our take on topics including retail closures, evictions, mortgage rates, venture capital opportunities, and more as we all begin thinking and rethinking our strategies for investing in an economy that should (please, hopefully) be strongly recovering from a deadly pandemic.
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