A Decade-Old Statute Pays Dividends for REIT Investors and Their Attorneys
Perhaps real estate investors and their attorneys have reason to be cautiously optimistic: economic reports released this week indicate signs of life in the real estate market. As reported by the Associated Press, the National Association of Realtors saw increases in pending home sales for the ninth straight month. And for the first time in six months, construction spending saw an increase. Optimists say these numbers, in conjunction with recent reports that home prices are climbing, indicate long-term recovery for both the residential and commercial real estate sectors.
Yet many analysts argue that these spikes are temporary. The growth in construction spending amounted to a measly 0.04%, and the rise in pending sales contracts over the last nine months is attributable to the homebuyer tax credit, which the Obama Administration and Congress recently extended.
I suppose time will tell which analysis is correct. But while commentators continue to debate, real estate investors have shifted their focus from traditional residential and commercial endeavors to a sector less affected by the downturn: healthcare properties.