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Top Real Estate News for Wednesday, Nov. 10, 2021: Foreclosures Sink; Prices Soar

By Marc Rapport – Nov 10, 2021 at 8:12PM

Key Points

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Home foreclosures hit record lows while inflation hit a three-decade high, and a crowdfunded REIT prepares to go public.

Foreclosures are down despite moratoriums and pandemic woes 

When eviction and foreclosure moratoriums expired in August, the expectation was that trouble was in store for millions of Americans who were in some stage of mortgage or rent delinquency. Motley Fool contributor Liz Brumer-Smith explains that while many were bracing for a flood of new foreclosures, the latest data show just the opposite: Foreclosures have fallen. 

The takeaway: This is a positive sign for most homeowners, renters, and many investors, indicating the housing market's strength. For investors looking for good deals on flips and rental properties, maybe not so much.

This crowdfunded REIT plans to go public in 2022

Modiv has announced that it plans to seek a direct listing next year. The real estate investment trust (REIT) would be the first one built via crowdfunding to list on a stock exchange.

The takeaway: Now's a good time to start thinking about this one, since Modiv will offer a unique combination of a largely investment-grade commercial real estate portfolio and the accelerating value of crowdfunding.

Key inflation measures hit 30-year highs

The U.S. Labor Department said inflation has reached highs not seen for three decades, with the consumer price index jumping 6.2% from last October to this past month, its sharpest year-over-year increase since 1990.

The takeaway: Gains in wages are being eroded by faster-rising prices for food, vehicles and fuel, and shelter. The effects on real estate could soon be seen in higher mortgage rates, construction costs, and more, affecting both affordability for many potential homebuyers and overall confidence in the sector.

Person looking down at their wallet as cash flies out.

Image source: Getty Images.

Home prices continue to soar across the country

The National Association of Realtors (NAR) said today that the median sales price of single-family existing homes rose in nearly every market it measures in the third quarter, jumping 16% overall to $363,700 nationwide.

The takeaway: The NAR's chief economist says he expects higher mortgage rates and increasing inventory to slow the pace next year. Single-family rental (SFR) rates have also jumped, and investors might want to consider how this can positively affect the prospects of those big SFR buyers and owners.

Tempur Sealy expands domestic manufacturing

Tempur Sealy International (TPX 2.60%) says it's expanding its U.S. manufacturing capacity to take on supply chain issues that cost it an estimated $200 million in third-quarter sales this year.

The takeaway: While stakeholders from the president on down are hoping the massive infrastructure bill will help ease supply chain snafus, this mattress-making giant's strategy of not waiting for that to happen could well be widely replicated. That's good news for local workforces and for the REITs and multiple other real estate interests that would provide the land and buildings for these facilities.

Marc Rapport has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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