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Around 5.8 million adults said they expect to face eviction or foreclosure over the next two months due to economic hardships wrought by the coronavirus pandemic, according to a U.S. Census Bureau survey, Bloomberg reported Nov. 23. That’s 33% of the 17.8 million adults behind on rent or mortgage payments.
Sun Belt cities, including Atlanta and Dallas/Fort Worth, are expected to be the top markets for retail real estate investment next year, according to the Emerging Trends in Real Estate 2021 report released Nov. 19 by PwC and the Urban Land Institute, online commercial real estate firm CREXI reported. These markets are growing faster than average, and attracting more residents and businesses.
Around $60 billion in commercial mortgage-backed securities is expected to be issued next year, slightly higher than the projected $53 billion to $55 billion this year, according to Kroll Bond Rating Agency, the Associated Press reported Nov. 20. Multifamily, industrial and essential retail assets are expected to remain solid, as should office space that attracts tenants with good credit.
The office sector continues to struggle, and the five markets facing the biggest challenges are New York City, Washington, D.C., Chicago, Houston and Los Angeles, commercial real estate firm Colliers International reported Nov. 24 in its third quarter office market report. These markets reported negative absorption, rent decreases and rising vacancy rates.
A full recovery for U.S. hotels isn’t anticipated until 2024, but occupancy is increasing, rising to 43% during the third quarter, up 12% from the second quarter, according to hospitality analytics firm STR, MBA NewsLink reported Nov. 23. Recovery will primarily be driven by lower-tier hotels with outdoor offerings in leisure markets.
The coronavirus pandemic has caused more households to enter the single-family rental market, and developers and investors are expected to bring 55,000 to 60,000 new properties to market, up from 40,000 last year, according to the National Rental Home Council, National Real Estate Investor reported Nov. 23. Rental home occupancy reached 94.7% during the second quarter.
The purchase price for the typical single-family home this year was 17.3% higher than the price for the typical condo as buyers proved willing to pay a premium for more space and privacy during the pandemic, online real estate marketplace Redfin reported Nov. 25. However, condo sales are rebounding following a huge drop this spring.
Pending home sales dropped slightly in October, down 1.1% from September, but all regions saw double-digit year-over-year increases in home sales even as the inventory of homes for sale is at a historic low, the National Association of Realtors reported Nov. 30.
The size of new single-family homes ticked up slightly during the third quarter, with the average home now 2,484 square feet and the median home 2,274 square feet, the National Association of Home Builders reported Nov. 19. The average size is up 1% quarter-to quarter, while the median size is up .04%.
Mortgage rates remained at record lows during the past week, sustaining an environment that has led to a boom in refinances among high-income buyers; however, low- and middle-income borrowers are neglecting to take advantage of the potential savings, Freddie Mac reported Nov. 25 in its Primary Mortgage Market Survey.
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