5 at 5: Your Daily Digest for Real Estate Investing, 12/23/2020

© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 12/23/2020

Job recovery flattens, multifamily lending blossoms, Zillow sees more boom, a look at three high-yield REITs, and wither goes Opendoor?

In Today’s News

Pace of Job Recovery Flattens in Several Markets

Employment recovery from pandemic-related shutdowns slowed, and in some cases, reversed, in several markets, as COVID-19 infection rates surged in many portions of the country, according to a blog this week from RealPage (NASDAQ: RP).

Why it matters: New York City led the way, with more than 756,000 jobs lost in the 12 months ending in November, but the Big Apple wasn’t alone. More than half of the 150 markets tracked by RealPage saw job losses mount over the month before. Even hot Houston is down year over year. There’s a lot of ground to be made up when the pandemic finally eases.

Capital Markets Remain More Than Willing to Finance Multifamily Deals

Wealth Management Real Estate says investors are rushing to buy apartment properties, with a lot of help from lenders willing to finance their deals.

Why it matters: Low interest rates are making it more attractive for multiple lenders to get in on the action, even as Fannie Mae (OTCMKTS: FNMA) and Freddie Mac (OTCMKTS: FMCC) are poised to ease their multifamily lending activity, and a leading broker says properties are now attracting bids at pre-pandemic rates. In short: The competition for good deals is heating up.

Zillow Predicts Stronger Housing Market Across the Board in 2021

Zillow (NASDAQ: Z) (NASDAQ: ZG) forecasts annual home sales growth will be the highest in nearly 40 years as life and financial certainty brings more sellers into the market to meet the heavy demand, and technology allows for faster connections with interested buyers.

Why it matters: Affordability looks like one of the few mitigating factors holding back even stronger price growth and demand, but it still looks like 2021 is shaping up to be in general a seller’s market as the pandemic rages on into the new year.

Today on Millionacres

3 Top REITs to Buy With Dividends Above 5%

Millionacres’ Reuben Gregg Brewer takes a look at three real estate investment trusts (REITs) that yield both a handsome dividend and some sense of security, given their current success in weathering the pandemic or potential for future growth.

Why it matters: While a yield above 5% can look enticing in today’s low-rate environment, tread carefully. Analysis like this from Millionacres can help you do just that.

Opendoor Is Now an Open Door, But Should You Walk Through?

Opendoor is officially a stand-alone public company, trading under the ticker symbol “OPEN” on the Nasdaq stock market. Opendoor raised about $1 billion from the transaction, which it plans to use to fuel growth and expand its market share.

Why it matters: Millionacres’ Matt Frankel explains that while narrowly focused on iBuying, Opendoor has some serious competition (including from Redfin (NASDAQ: RDFN) and Zillow) and is already an expensive stock. While it has tremendous market potential, it also carries a lot of volatility.

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