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5 at 5: Your Daily Digest for Real Estate Investing, 07/22/2020


Jul 22, 2020 by Marc Rapport

Sizzling home sales, dropping delinquencies, proposed first-time homebuyer tax breaks, and a rundown on REITs from a long view. Plus, is it time for the Urban Edge?

In Today's News

Existing Home Sales Soar in Sizzling Summer Season

Predictions of summer replacing spring as this year's hottest sales season for homebuyers appear to be coming true, as the National Association of Realtors says June sales skyrocketed by 20.7% over May's figures.

Why it matters: As COVID-19 was wrecking lives and the economy in the spring, optimistic forecasts for a summer bounce back seemed a bit rosy, perhaps. But rock-bottom interest rates seem to be making these dreams come true.

June Mortgage Data Shows New Low in Delinquencies, For Now

Black Knight (NYSE: BKI) reported today that the national mortgage delinquency rate improved in June for the first time in five months but that the number of seriously delinquent mortgages are at nearly a 10-year high.

Why it matters: The dropping rate sounds like good news on the high line, but moratoriums and forbearances soon to expire may have a lot to do with this. Time will tell if that will result in a foreclosure surge, and that time may be drawing near.

Bill Would Help First-Time Homebuyers With Tax-Free Retirement Withdrawals

Rep. Sean Maloney, D-N.Y., has proposed allowing first-time homebuyers to take up to $25,000 out of their retirement accounts -- tax- and penalty-free -- to help buy a home and, by extension, help the economic recovery from the coronavirus pandemic. (The NAR says huzzah!)

Why it matters: Using retirement like this might feel a bit like robbing Peter to pay Paul, and CFPs may cringe, but this could be a tipping-point incentive for many in the lower-priced housing market where affordability can loom so large.

Today on Millionacres

Are REITs a Good Investment Right Now?

Millionacres' Kevin Vandenboss compares what happened to real estate investment trusts (REITs) after 2008 and where they are now and lays out reasons for optimism and caution in those investments in this pandemic-driven market right now.

Why it matters: REITs have long been a reliable way to invest for growth and income, and they're not all alike, by any means. This piece lists six best practices for maximizing your chances for success. That makes it worth a read.

Down 42% in 2020. Is it Time to Buy Urban Edge Properties (NYSE: UE)?

This shopping space REIT is very heavily concentrated in and around New York City, a metro area in the throes of reopening after taking its place as the coronavirus hot spot in the U.S., and its stock was heavily beaten down and the dividend stopped.

Why it matters: There are actually reasons to believe Urban Edge could be a buy, however, and if those reasons convince you, now might be the time, before August earnings announcements drive the price up. That is, if the second quarter didn't decay prospects too badly.

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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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