The commercial real estate news for February 1st covers the fate of the ACA and healthcare REITs, a struggling Sears, and a robust housing market.
Despite Uncertainty Over Drive to Repeal Obamacare, Investors Banking on Demographics to Maintain Healthy Outlook for Health-Care Properties
Healthcare REITs staggered a bit in the aftermath of the unexpected election results. The sector has experienced a loss of 2.7% since November, largely based on the fear of a complete Obamacare repeal. Economists advise investors not to worry though. The experts point to the huge population of aging baby boomers as a sign of a healthy future for healthcare.
It’s a tough time for retailers. After trading for $195.18 in 2007, Sears stocks were trading for a mere $6.86 at the beginning of this week. Moody’s Vice President Christina Boni complimented Sears’ ability to stay afloat through strategic use of their assets, but warned that a fiscal turnaround in 2017 was vital for them to survive.
An energized economy lead to rising house prices in November, according to the S&P/Case-Shiller U.S. National Home Price Index. Their report credited rising disposable personal income, lower unemployment, and continued low interest rates as factors in the growth. Experts expect Trump’s pro-growth agenda, infrastructure plans and tax reforms to continue the price increases.