Foreclosures down and delinquencies up, affordability is a matter of perception, office space floods markets, Ventas buys more life science space, and how to make your house listing go viral.
In Today’s News
Foreclosures at New Low, Delinquencies at New High in U.S. Housing Market
CoreLogic (NYSE: CLGX) reported today that the August foreclosure rate was the lowest since 1999 but that serious delinquencies were at their highest rate since 2014.
Why it matters: There’s a kind of drip-drip-drip of mounting delinquencies going on in the U.S. housing market while foreclosures continue to be thwarted by forbearances and moratoriums. A rallying economy freed from the grip of COVID-19 can’t come soon enough.
NAHB: Some Buyers Perceive an Uptick in Affordability
The National Association of Home Builders (NAHB) said today that 27% of buyers report being able to afford half or more of the homes available for sale in their markets. A year earlier at this time, that share was 20%.
Why it matters: The trade group says the increase it found in its survey shows that lower mortgage rates may be helping more than rising prices hurt, but only for some people. A large majority of homeowners said they can afford only a minority of the homes available in their markets. Unless that changes, at least on the margins, this housing market rally could run out of steam sooner than it might otherwise.
Corporate Tenants Dump Excess Office Space, Sending Shivers Through the Market
The Wall Street Journal [subscription required] reported today that corporate tenants put a record 42 million square feet of unused office space on the market in the second and third quarters this year. The situation could get to the point where tenants and landlords are competing for the same clients, further depressing rents.
Why it matters: Office real estate investment trusts (REITs) had been holding up better than a lot of their hospitality and retail peers, but that situation could change as working from home becomes permanent for many, and individual landlords and investors face the same possibly diminishing prospects.
Office REIT Ventas in Joint Venture to Develop Life Science Space
Commercial Property Executive reported that Ventas Inc. (NYSE: VTR) and a Singaporean fund are investing about $930 million in four university-connected projects in Pennsylvania and Arizona.
Why it matters: Not all office REITs are alike. Ventas is among other REITs and private investors who have been sinking a lot of capital in recent months into projects like these, even amidst the pandemic. Confidence in that sector may, in fact, be underscored by the COVID-19 tragedy and the need for a medical and scientific response.
Today on Millionacres
What Makes a Property Listing Go Viral?
Some homes for sale get thousands of views despite, or because of, themselves. Take for example one in suburban Detroit that appeared to show cocaine on a table and gathered 29,000 views in a day or another in Queens that made no bones about its condition. (It apparently had good enough bones, though, to go for $720,000.)
Why it matters: Millionacres’ Barbara Zito leads with those interesting examples and then provides some more practical tips on how to make your property stand out in the cyber crowd.