Santa Claus Rally? • Home Sales Slide • REIT Updates

December 21, 2022 | Hoya Capital

Santa Claus Rally? • Home Sales Slide • REIT Updates Real Estate Daily Recap Dec 21 Written By U.S. equity markets rebounded Wednesday while interest rates pulled back as investors parsed solid corporate earnings results from Nike and FedEx and data showing a deepening housing market cooldown. Advancing for a second-session and erasing its weekly declines, the S&P 500 rallied 1.5% today while the tech-heavy Nasdaq 100 snapped a five-day decline with gains of 1.5%.

Real estate equities were also broadly-higher today with the Equity REIT Index advancing 1.1% with 15-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 2.1%. Existing Home Sales dipped for a 10th-straight month to an annual rate of 4.09 million. Notably, the -35.4% plunge in sales was the sharpest year-over-year decline on record, exceeding that of the 2008 housing crisis which saw a peak decline of -30.3% in January 2008.

Pebblebrook Hotels (PEB) dipped more than 8% today after it provided a business update yesterday afternoon in which it downwardly revised most of its earnings metrics for Q4. A pair of office REITs also provided updates on their respective strategic repositioning. Income Builder Daily Recap U.S. equity markets rebounded Wednesday while interest rates pulled back as investors parsed solid corporate earnings results from Nike and FedEx and data showing a continued sharp cooldown in the U.S. housing market.

Advancing for a second session and erasing its weekly declines, the S&P 500 rallied 1.5% today while the tech-heavy Nasdaq 100 snapped a five-day decline with gains of 1.5%. The 10-Year Treasury Yield ( US10Y ) remained steady at 3.68% while the 2-Year Treasury Yield ( US2Y ) pulled back 4 basis points to 4.22%. Real estate equities were also broadly-higher today with the Equity REIT Index advancing 1.1% with 15-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 2.1%.

The beaten-down single-family homebuilding sector rebounded today despite data from the ...