Hoya Capital Research | Real Estate & Housing Research

Keepin' It Real

U.S. equity markets surged on Friday, continuing a relentless "reopening rally" after the BLS jobs report showed a stunning gain in employment in May as the post-pandemic recovery takes hold.
Finishing with gains of nearly 5% on the week, the S&P 500 added another 2.6% today while the Dow Jones jumped 839 points to cap off a five-day winning streak.
Surging nearly 10% on the week, the broad-based Equity REIT ETFs jumped another 4.3% today with all 18 property sectors in positive territory while Mortgage REITs rose 4.9%.
The U.S. economy unexpectedly added 2.5 million jobs in May, the single-largest month of job growth ever, following two months of devastating job losses amid the coronavirus shutdowns.
As we've discussed for several weeks, signs of a V-shaped recovery in the U.S. housing sector, along with near-100% residential rent collection, have been foretelling a sooner-than-expected economic rebound.

U.S. equity markets finished mostly lower on Thursday, consolidating a significant "reopening rally" over the past several weeks, on continued signs that the economic rebound is already in full swing.
Following gains of 1.4% yesterday, the S&P 500 declined by 0.3% while the Dow Jones Industrial Average added 12 points to the nearly-800 point rally over the prior two days.
This week's "reopening rally" comes ahead of tomorrow's closely-watched nonfarm payrolls report in which economists expect to see 8.25 million job losses in May, reflecting the damaging toll of coronavirus-related shutdowns.
Higher-frequency data, however, has shown that millions of Americans have returned to work - and to the restaurants and hotels - over the last several weeks. Housing data continues to be a bright spot.
Still higher by more than 5% this week, the broad-based Equity REIT ETFs declined by 0.7% today with 9 of 18 sectors on the upside led again by hotel and retail REITs while Mortgage REITs jumped 4.9%.

U.S. equity markets rallied for the fourth straight day on Wednesday after housing and employment data indicated that the post-pandemic economic rebound appears to already be taking hold.
Closing more than 40% above its lows in March, the S&P 500 gained another 1.4% on the day while the Dow Jones Industrial Average finished higher by another 527 points.
Real estate equities have led the reopening rally over the past two months and homebuilders and REITs were again among the leaders today. Equity REITs jumped another 3.5% today.
The Mortgage Bankers Association reported this morning that home purchase mortgage applications rose for the 7th straight week and are now 18% higher from the same week last year.
ADP revealed that far fewer jobs were lost in May than anticipated. Retail REITs led the way today after encouraging reports on recovering demand from a bevy of retailers and payment processing firms.