Rough Day For Real Estate [Daily Recap]

April 1, 2020 | Hoya Capital

Rough Day For Real Estate [Daily Recap] Uncategorized Apr 1 Written By U.S. equity markets posted sharp declines on a volatile Wednesday after the White House coronavirus task force urged Americans to prepare for a "a hell of a bad two weeks." The S&P 500 finished lower for the second-straight day after posting gains in 4 out of 5 days, declining by 4.4% while the Dow Jones Industrial Average declined nearly 1000-points.

It was an especially brutal day for real estate-related equities as the broad-based Real Estate ETFs declined by 6.6% on the day with all 18 REIT sectors in negative territory. It's shaping up to be an especially brutal week for Mortgage REITs, which dipped another 12.5% as short-term liquidity concerns re-emerged after appearing to largely subside last week. "Is this 2008 all over again?" Amid the coronavirus pandemic, a growing chorus of pundits are forecasting similar pain for real estate as that felt during the Financial Crisis.

We discuss why wartime-era economic comparisons may be more appropriate. Real Estate Daily Recap U.S. equity markets posted sharp declines on a volatile Wednesday session after the White House coronavirus task force urged Americans to prepare for a "a hell of a bad two weeks." The S&P 500 ETF ( SPY ) finished lower for the second-straight day after posting gains in 4 out of 5 days, declining by 4.4% while the Dow Jones Industrial Average ( DIA ) declined nearly 1000 points.

It was an especially brutal day for real estate-related equities as the broad-based commercial Real Estate ETF ( VNQ ) declined by 6.6% on the day with all 18 REIT sectors in negative territory, dragged down by retail and healthcare REITs. It's shaping up to be an especially brutal week for Mortgage REITs ( REM ), which dipped another 12.5% as short-term liquidity concerns re-emerged after appearing to largely subside last week.

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