Another area of the market is feeling the stress. This time, it’s the $5.6T+ in commercial real estate loans held by banks. But one area of CRE is feeling even more pain: offices. Their values have been hit hard by: Rising interest rates — which sent interest payments up and property values down. Remote work…
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The real estate market is cooling and there are big implications for investors
A hot housing market has priced many new buyers out. Before you make an offer on that suspiciously discounted house — think again; you might want to hold off. The housing market is starting to cool, home construction stocks are selling off and real estate firms are laying off employees. This week, the 30-year mortgage…
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Amazon has a problem: too much warehouse space
Record e-commerce growth sent industrial warehouse demand soaring in the past two years. Amazon — the largest e-commerce giant with 56.7% of the U.S. market — doubled warehouse capacity during COVID but has a new problem: too much warehouse space. Amazon bit off more than it could store Amazon is one of the most prominent…
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Is the housing market in a bubble?
B-word incoming: On March 29, the Dallas Fed warned of a potential housing bubble — thanks to a hot housing market. Per AEI Housing Center, US home prices jumped 31% in 2020 and grew 17% annually — while markets in Austin, Phoenix and Tampa have doubled that pace. Analyzing housing like stocks Fortune Senior Editor…
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Zillow exits the iBuying business
2021 was a good time to own real estate — but a terrible one for real estate stocks. Despite a hot 2021 real estate market, home flipping businesses performed terribly — with Zillow down 37%, Opendoor down 12%, and Offerpad down 29%. What’s the big deal? Zillow transformed from a real estate marketing-focused business into…
Read moreShould you buy or rent when renting is cheaper in most US cities?
Nearly 50% of all American houses are selling above asking prices — and now renting is cheaper than owning in nearly every market. Show me the evidence: According to LendingTree, the median costs for renters are lower than buying in the 50 largest US metropolitan areas — by an average of $606. NYC, SF and…
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Mall stocks rebound as mall traffic recovers with the US emerging out of lockdowns
Robin Sparkles wants you back at the mall, but not as much as the mall owners that have struggled through the past year. With the US emerging out of lockdowns, mall traffic is rebounding fast and mall stocks are seeing a surge in their stock prices. 2020 death of malls — by the numbers: Malls…
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Rocket Companies surges on strong earnings and becomes the target of WallStreetBets
If a stock randomly jumps 70%, there’s probably a good explanation — WallStreetBets. On Feb. 25, Rocket Companies, who owns the largest mortgage lender in the US, jumped 10% after it reported a strong fourth-quarter and full-year 2020 earnings: $15.7b in 2020 sales — more than triple its 2019 sales $9.4b in 2020 net income…
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Zillow and Opendoor ride the iBuying wave — Redfin, not so much
Real estate has been one of the slowest industries to adopt technology but over the past decade, a suite of tools has digitized the homebuying experience: Zillow ($Z) offers an online marketplace to buy/sell your home. Redfin ($RDFN) is a real estate brokerage that focuses on using technology to service clients while offering lower agent commissions. But…
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