5 at 5: Your Daily Digest for Real Estate Investing, 07/23/2020
Rising profits, rising seas, the impact and potential changes in affordable housing tax breaks, and the ban on evictions during a pandemic that only seems to be digging in.
In Today’s News
ATTOM Data Solutions says the typical sale of a home in the U.S. from March through June generated a gain of $75,971, up from $66,500 in the first quarter this year and $65,250 in the second quarter of last year.
Why it matters: The second-quarter results included a lot of sales that happened after the pandemic struck, speaking to the perhaps unexpected resiliency of the housing market during such a public health and economic calamity.
A cyclonic trifecta — one in the Caribbean, one in the Gulf, and the other in the Pacific — could raise the stakes on an already overactive tropical storm season.
The National Association of Home Builders says new analysis shows that approximately 8 million low-income households, or 18.7 million, were living in homes whose builders received low-income tax credits.
Why it matters: Proving the social good of incenting private investment in real estate may become even more critical in a Biden administration. (See below.)
Today on Millionacres
Like-kind exchanges are said to be on the possible chopping block as part of Democratic presidential candidate Joe Biden’s “Caring Economy” plan that would use the resultant savings to fund a range of social safety net benefits.
Why it matters: Revenue is going to have to be generated to pay for these plans to address critical social needs. Real estate investors need to keep their eye on the ball to see where and adjust their own strategies accordingly.
The ban on evictions from federally subsidized housing or properties with a federally backed loan — and there are millions and millions of them — ends July 25, while the pandemic itself just seems to be expanding.
Why it matters: This is where things stand today. Congress is looking at new relief plans, including one that could ban all rental evictions and last through next March. Many landlords may see increased pressure financially and socially as the crisis deepens.