Housing Shortage | Dividend Hikes | REITs Rebound

September 22, 2020 | Hoya Capital

Housing Shortage | Dividend Hikes | REITs Rebound Daily Recap Sep 22 Written By Daily Recap U.S. equity markets rebounded Tuesday following better-than-expected housing data and some potential clarity in the looming Supreme Court battle, counterbalancing continued coronavirus concerns. Following declines of 1.2% yesterday, the S&P 500 gained 1.0% today while the tech-heavy Nasdaq 100 jumped by 1.9%. The Dow Jones Industrial Average gained 141 points. Real estate equities also rebounded after a rough day with the broad-based Equity REIT ETF (VNQ) finishing higher by 1.1% today with 15 of 18 property sectors in positive territory.

Sales of Existing Homes rose another 2.5% in August from last month and rose by 10.5% from last year. The supply of existing homes dipped 19% from last year, driving a 11.4% surge in home prices last year. After the bell today, we saw two more dividend hikes. Healthcare Trust of America (HTA) became the 29th equity REIT to raise its dividend in 2020 to levels above 2019 rates. Mortgage REIT Western Mortgage Capital (WMC) resumed its dividend at levels below pre-pandemic rates.

Real Estate Daily Recap U.S. equity markets rebounded Tuesday following better-than-expected housing data and some potential clarity in the looming Supreme Court battle, counterbalancing continued coronavirus concerns. Following declines of 1.2% yesterday, the S&P 500 ETF ( SPY ) gained 1.0% today while the tech-heavy Nasdaq 100 ( QQQ ) jumped by 1.9%. Real estate equities also rebounded after a rough day with the broad-based Equity REIT ETF ( VNQ ) finishing higher by 1.1% today with 15 of 18 property sectors in positive territory.

The Mortgage REIT ETF ( REM ) gained 0.5% after slipping 3.2% yesterday. Choppiness in the equity markets over the past month, fueled by the reacceleration in the coronavirus outbreak in Europe and a continued stalemate in a renewed fiscal stimulus package, hasn't yet translated to the bond markets, which have been notably anchored. 8 of ...