What I’m Reading
Wanna Get Away? Demand for second homes increased far more than for primary homes between January 2020 and January 2021, according to a Redfin analysis of mortgage application data from Optimal Blue, a real estate analytics firm. If ever there were an indication of K-shaped recovery, this is it. I would imagine that this market will cool off a bit in the coming months given the FHFA’s recent new caps on second home and investment home mortgage purchases. New York Times
Doubling Down: Las Vegas was particularly hard hit in 2020 thanks to overreliance on tourism. Now that things are opening up again, the city is betting big that gambling and conventions will bounce back in 2021 and beyond. Wall Street Journal
Narrative Violation: The pandemic has taken the brunt of the blame for record retail bankruptcies in 2020. However, a new report from Fitch reveals that many of these bankruptcies were not, in fact truly pandemic driven and rather partially strategic, allowing companies to equitize debt claims and rationalize real estate portfolios through lease rejection. Chain Store Age
Devil in Details: A $50 billion federal program designed to help people avoid eviction by paying their rent is running into an unexpected hurdle: Some landlords are turning down the payment, saying it comes with too many conditions. Wall Street Journal
Nature is Healing: In an early sign of optimism, consumers are replenishing their wardrobes with workwear, dresses and even tuxedos as opposed to the sweat pants that dominated over the past year. Washington Post
Chart of the Day
It has been an absolutely brutal few months to own longer-dated Treasuries.
Source: The Daily Shot
WTF
Let it All Hang Out: A 71 year old man who goes by the nickname “Babycakes” was arrested for sitting naked in a chair outside an apartment complex where several young children were playing because Florida. KIRO 7
Poop Deck: Two women were arrested after a security camera caught them dropping their pants at the same time to poop on the deck of a community pool because Florida. The Palm Beach Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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