February 1st – Guessing Game

What I’m Reading

Guessing Game: Pandemic uncertainty has made it extremely difficult for appraisers to assign values to office buildings.  IMO, this will continue until the dust clears and the impact on demand from work from home can be fully quantified.  Globe Street

Windfall: Crypto whales are cashing out some of their profits and using them to purchase some of the most expensive luxury homes in the US.  (h/t Steve Sims) Wall Street Journal

Snowed In: With ski resorts having trouble hiring and employees calling out sick, visitors have been frustrated by idled lifts, limited services and closed terrain. NY Times

Big Shift: The move from “just in time” to “just in case” inventory management continues to drive demand for warehouse space, putting upward pressure on rents. Marketplace

War Chest: Single-family landlords, builders, apartment companies and institutional backers have committed $85 billion for build-for-rent projects, enough to develop 315,000 houses.  Only about 20% of the money has been spent and it’s already pushing up lot prices.  Renter demand is likely to intensify when mortgage rates increase, putting upward pressure on rents.  Bloomberg

Chart of the Day

ARMs sure looked poised to gain market share this year.  

time series chart of U.S. weekly average 30-year rate minus 5/1 ARM rate (in %)
Source: Freddie Mac Primary Mortgage Market Survey

Source: Len Kiefer

WTF

What a Way to Go: A 70 year old British man died in a Thai happy ending massage parlor while getting a “massage.”  The Mirror

Peep Show: A 25-year old man was arrested for showing pictures of his penis to a young girl in a Walmart because Florida.  NBC 2

Basis Points – A candid look at the economy, real estate, and other things sometimes related. 

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