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20192020Rent Payments Collected by April 27th95.9%91.7%Rent Payments Collected by May 27th94.8%93.3%Rent Payments Collected by June 27th94.7%94.2%Rent Payments Collected by July 27th95.3%93.3%*Data brought to you by NHMC Rent Payment Tracker
CurrentPrior Week Change10 Year Treasury0.553%+0.020%DOW27,386.98+1,073.33S&P 5003,349.16+102.94Unemployment Rate10.2%-0.9%Total US COVID-19 Cases4,888k+392kTotal US COVID-19 Tests59,650k+5,820k*Metrics as of 11am EST on Friday, July 31
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What's Happening Now
Another week, another mixed bag. Jobless claims last week came in at roughly 1.18 million, down from the expected 1.4 million, the lowest we’ve seen during the crisis, but still the 20th consecutive week that jobless claims have been over 1 million. That’s still a staggering number of people in our country without work, and when combined with the expiration of the federal unemployment benefits expiring last week, it looks as though the hard run is going to continue.
To follow on to my anecdote from last week of that crazy loan quote, the home mortgage market has been seeing similar historic numbers. The 30-year mortgage hit 2.88% this week, down from the prior historic low of 2.99% the week before. This marks the 8th time this year we’ve seen a new record low. While that allows for buyers’ dollars to stretch a bit further, the overall affordability of homes continues to pose a challenge for many buyers, with less than 60% of new and existing homes sold in Q2 being designated as affordable. That’s the lowest rate over the last year and a half.
How these factors will continue to play off of one another is going to be interesting to watch from all aspects. We hope to see the continued improvement of job numbers, as that will be key to preventing any further economic slide that we may face.
What To Watch
We’ll keep this one short and sweet – stimulus. We still don’t have an idea of what will be in the new deal, and while reporting suggests that a new package will be reached “in the near future,” nobody really knows when that will be or what it will look like.
There have been talks of another round of PPP loans for small businesses, the HOPE private equity facility we discussed for certain CMBS borrowers, a possible retroactive extension of the unemployment benefits and myriad other features.
We’ll be keeping a close watch on the latest and will be sure to include any updates here in this newsletter. As always, let us know if there’s anything you’d like us to discuss in here and we hope you’re doing the best you can to enjoy what remains of summer!
-Adam Hooper, CEO
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Layoffs continue to be elevated across the U.S. economy as Covid-19 remains widespread
CBRE Research recently conducted a survey of 126 senior-level global real estate executives to determine how the COVID-19 pandemic will change the location, design and use of office space.
The number of unsold apartments is now at the highest level in almost a decade, according to Jonathan Miller, CEO of Miller Samuel.
After many shared spaces had to close, property managers set up reservation systems for gyms and rooftops, and organized online happy hours, trivia contests and classes.
With many Americans working and learning from home, multifamily properties are facing increased wear-and-tear, greater volumes of waste and recycling and demands for services.
Justin Sullivan/Getty Images RETAIL What Will Back-to-School Look Like at U.S. Malls in the Midst of COVID-19? Some malls are still holding back-to-school marketing events, but outdoors, with attendance limits and social distancing guidelines.
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