Reverse Exchanges in a Changing Market/Webinar Replay/Millennial Homeownership Delayed

USING REVERSE EXCHANGES AS A TOOL IN A CHANGING MARKET

Many investors are aware of their ability to use a reverse 1031 exchange when they are faced with having to close on their replacement property before they are able to close on their sale property; however, reverse exchanges can also be used proactively when tight inventory creates purchasing challenges.

In a regular deferred exchange, an investor has 45 days to identify potential replacement property. Once the identification deadline passes, the investor is locked in to that list of potential properties, and has to close on one or more of those properties within 180 days in order to complete a successful 1031 exchange. In a market with low inventory, these time frames can be very challenging.

WEBINAR REPLAY:

ESSENTIALS OF 1031 EXCHANGES

REPLAY

MILLENNIAL HOMEOWNERSHIP DELAYED, BUT NOT DENIED

As we navigate the unprecedented impact of COVID-19, home has taken on added significance and there are signs that homeownership remains one of the main tenants of the American Dream. After hitting a bottom in the second week of April, mortgage applications to purchase a home increased for nine consecutive weeks, even exceeding levels from a year ago for five straight weeks. Housing may be positioned to lead the recovery, a role it has traditionally played in previous downturns , with the exception of the Great Recession. In the recovery from the Great Recession, the homeownership rate hit a generational low of 63 percent in 2016 , but it has been steadily rising since. A combination of demographic and economic factors has driven the steady rise since the low point and remain poised to fuel demand in the years ahead.

LISA VILLARREAL

Business Development Manager

1031 Exchange Specialist

408.470.9417

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