Pending home sales hit new high, pandemic and millennial homebuying, time to build a house, where to be a landlord, and getting real with Realogy.
In Today’s News
The National Association of Realtors says pending home sales in August continued to move upward, marking four uninterrupted months of positive contract activity. Each of the four major regions experienced growth in month-over-month and year-over-year pending home sales transactions.
Why it matters: While interest rates are likely to remain low, the trade group says, without supply to match, the sales recovery from the early days of the pandemic may not be sustainable. Investors who can feed supply into this market can benefit from some real demand right now, though.
A survey of millennials who don’t own a home finds a 28% jump in buying interest as a result of the pandemic, according to this report in GlobeSt.com.
Why it matters: As a follow-up to the item above, here’s some of that demand that investors can satisfy right now if they have the right property at the right price. Pre-pandemic millennials were typically tagged as a group with flagging interest in owning. Maybe not so much now.
The average completion time of a single-family house is around 8.1 months, which usually includes a little over a month from authorization to start and another seven months to finish the construction, according to the latest Survey of Construction from the Census Bureau.
Why it Matters: This blog post from the National Association of Home Builders takes the report and breaks it down into categories. For instance, the longest builds are custom jobs by the homeowners while the fastest are homes built by hired contractors. Interesting. And useful info, perhaps, for someone considering committing to a build.
Today on Millionacres
Southern states tend to favor landlords while northern states favor the renters. But, as Millionacres’ Laura Agadoni points out, there’s more to it than that.
Why it matters: If you’re considering becoming a residential landlord, you might want to know which states to avoid. Or, if you have no choice, at least know what to expect.
Millionacres’ Liz Brumer gets real about Realogy (NYSE: RLGY), a residential real estate company that engages in brokerages, franchising, relocation, mortgage, and title and settlement services for a lot of the industry’s brand names.
Why it matters: Investors considering buying a real estate stock that’s not a real estate investment trust (REIT) are probably looking for growth more than income. Liz lays out why Realogy might be a buy, but not necessarily right now.
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