House Flippers Find Success Despite Tough Market Conditions
In a challenging market where historically low inventory meets soaring mortgage rates, some independent house flippers are finding success and remain optimistic about the industry’s future. Despite a recent decline in gross profits and the number of single-family home flips, sentiment among flippers suggests a strong sales environment and anticipation of further market improvement, driven by low resale inventory and expectations of a federal funds rate cut. While some regions face weaker markets than others due to factors like competition from homebuilders, smaller real estate investors are adapting and thriving, buoyed by their agility and local market knowledge. Additionally, a shift towards renting flips instead of selling them indicates a potential strategy change among flippers, influenced by factors like rising single-family rent and home prices.
Red Lobster Abruptly Shuts Roughly 100 Restaurants Nationwide
Red Lobster has abruptly closed about 100 of its roughly 700 restaurants and is auctioning off equipment from many of these sites. The closures come amid reports that the chain is considering filing for Chapter 11 bankruptcy protection. TAGeX Brands, a restaurant industry liquidator, announced it is conducting a large-scale auction of equipment from over 50 Red Lobster locations, with the first auctions ending soon. The closures and financial struggles have surprised employees and patrons alike. Factors contributing to Red Lobster’s difficulties include the pandemic, high interest rates, labor costs, and an unsuccessful all-you-can-eat shrimp promotion. The chain has been seeking a buyer to avoid bankruptcy, but its largest investor, Thai Union, has also expressed intentions to sell its stake due to sustained financial losses.
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US House Prices Reach New Highs at Time of ‘Economic Uncertainty’
The S&P Corelogic Case-Shiller Index revealed a robust 6.4% annual increase in single-family house prices in the United States in February, surpassing January’s record-high growth. All cities in the index reported annual price growth, with San Diego experiencing the largest increase for the second consecutive month. Despite economic uncertainty, fueled by inflation concerns and rising mortgage rates, housing prices continue to soar, reaching all-time highs in cities like San Diego, Los Angeles, New York, and Washington, D.C. However, this persistent growth, coupled with limited supply and higher mortgage rates, is exacerbating housing affordability issues, prompting more prospective buyers to opt for renting over buying.
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BH, Kolter under contract to pay $100M for Naples condo complex
The article reports that BH Kolter is set to acquire a Naples condo complex for $100 million. The property, known as the Mangrove Bay Condominiums, consists of 53 units and spans over 9 acres. The acquisition represents BH Kolter’s continued expansion in the Florida real estate market. The deal underscores the robust demand for luxury residential properties in desirable locations like Naples.
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