What I’m Reading
Pass Through: Contractors are raising prices aggressively to keep up with inflationary pressures. The result: replacements costs are headed higher. Wealth Management This will also keep upward pressure on insurance premiums for the foreseeable future.
Limited Competition: Buying real estate off market is much more about avoiding protracted bidding wars and minimizing pursuit costs than it is about buying properties at a deep discount. Globe Street
Log Jam: Homebuilders are struggling with labor and material shortages. As a result, construction timelines have dragged out substantially with stalled projects leading to a high amount of inventory in various states of completion. However, as seen below in the Chart of the Day, this is much more about unbuilt future inventory. Once homes are completed, they are selling quickly. Wolf Street
Here We Go Again: The union representing about 15,000 dockworkers at the largest U.S. ports declined an offer by employers to extend existing labor contracts for a year, setting the stage for heated negotiations. Transport Topics
Boom: Private equity deals are poised to top $1 trillion in 2021 in a record year for the industry. Wall Street Journal
Charts of the Day
Lots of talk about new home inventory hitting its highest level since 2008. However, a look behind the numbers tells a very different story: if builders can source labor and materials to build a home, it sells very quickly.
Source: Wolf Street
WTF
Evening Entertainment: A Florida woman was arrested after police say she walked into a home and undressed herself before hugging and sitting on multiple people, including several who were 65 years or older because Florida. News 13
Circular Logic: A woman who was arrested for possession of narcotics told police that she sells fentanyl to make money to pay for an attorney “for a pending drug charge” because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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