Daily Recap: Real Estate Climbs As Strong Housing Data Continues

September 26, 2019 | Hoya Capital

Daily Recap: Real Estate Climbs As Strong Housing Data Continues Uncategorized Sep 26 Written By With all eyes on Washington DC following the release of a whistleblower complaint alleging wrongdoing by the President, US equity markets ended the day modestly lower as investors digested the potential ramifications of the latest revelations. The S&P 500 ETF (SPY) ended lower by 0.2% while the Nasdaq ETF (QQQ) fell by 0.4%. The 10-Year yield resumed a retreat after perking higher to 1.90% back on September 14th, dipping below 1.70%, but still well off the recent lows of 1.45% hit on September 3rd.

In a continued "risk-off" market theme, the broad-based REIT ETFs ( VNQ and IYR ) climbed by 0.9%, led by the shopping center, net lease, and mall REIT sectors. Top individual performers on the day included CBL & Associates (CBL), Washington Prime (WPG), Pennsylvania REIT (PEI), Spirit (SRC), and Kimco (KIM). The hotel REIT sector was the lone category in negative territory on the day, led to the downside by Diamondrock (DRH), Pebblebrook (PEB), and Xenia (XHR).

We published a piece this morning on the hotel REIT sector, Hotel REITs: Airbnb's WeWork Problem . The Hoya Capital Housing Index , the benchmark that tracks the performance of the US housing industry, finished the day higher by 0.2% as the streak of better-than-expected housing data continued. Pending Home Sales topped estimates this morning as year-over-year contract signings rose 2.5%. The Real Estate Technology and Brokerage sector was the leader on the day with strong performance from Re/Max (RMAX) and Realogy (RLGY).

The busy week of economic data comes to a close tomorrow with PCE inflation data, and the closely-watched personal income and spending data for perhaps the best "read" on the strength of the US consumer. With gains of 25% so far this year, the broad-based REIT ETFs ( VNQ and IYR ) continue to outperform the S&P 500, which has climbed ...