Tax Day is now a May day, a rally in retail, $15,000 tax credit at closing, Google goes big on data centers and offices, and bidding wars now chase some buyers away.
In Today’s News
Just as it did last year, the Internal Revenue Service announced Wednesday evening it’s moved Tax Day for 2020 returns further out into the calendar, this time to May 17. Last year, in the first year of the pandemic, 2019 returns ended up not being due until midsummer.
The Millionacres takeaway: There are lots of changes in the tax code for everything from unemployment benefits to opportunity zone investments to contend with, so this extra time should provide a breather for real estate investors to get their ducks in a row.
Year to date, retailers in the U.S. have announced 3,199 store openings and 2,548 closures, according to tracking by Coresight Research and reported today on CNBC.
The Millionacres takeaway: Plummeting rents and soaring vacancies following the arrival of COVID-19 have flipped the scenario from 2020, when the score was 8,953 closures to 3,298 openings. This piece explains the strategies at play.
HousingWire gathered reaction here from multiple stakeholders about the Biden administration’s proposed $15,000 homebuyer tax credit, noting that what makes this one different is that it would be money available upfront at the time of closing.
The Millionacres takeaway: While hardly a done deal, if this tax credit becomes law, it would cover the down payment for a home in 40 of the nation’s 50 largest metro areas. Of course, that might add to the pressure on low supply and drive prices up, but all that remains to be seen.
Today on Millionacres
Google (NASDAQ: GOOGL) has announced plans to spend over $7 billion to expand office space and data centers across 19 states in 2021. The company says it will create at least 10,000 full-time jobs in the process.
The Millionacres takeaway: Our Maurie Backman says that while it’s unlikely Google’s announcement will revive office buildings overnight, we could see a leasing uptick. That makes now a good time to scoop up some discounted office REIT, or real estate investment trust, stocks. Data center equities, meanwhile, just keep getting more relevant.
The National Association of Home Builders (NAHB) says the main reason potential homebuyers have been unable to successfully strike a deal has reversed from a year ago. Losing bidding wars is now the main reason, surpassing not being able to find an affordable home.
The Millionacres takeaway: Sharply rising prices driven by historically low interest rates and inventory surely are sparking affordability concerns as well as bidding wars, but the supply of buyers, and the optimism expressed by even those frustrated shoppers, bodes well for the market in the months ahead.
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