Solid Start To Earnings Season For Real Estate
Amid a volatile backdrop of political and trade uncertainty, US markets have seemingly calmed over the last several weeks. The S&P 500 barely missed notching a fifth consecutive positive week
The longest US government shutdown in history came to a temporary halt on Friday as the negotiations continue. The S&P 500 rose more than 10% during the 35-day shutdown.
REIT earnings season got off to a solid start this week. Industrial REIT Prologis hasn’t seen “any softness” in demand for their distribution centers. REITs rallied for the third week.
The second and third largest homebuilders, D.R. Horton and NVR, both reported in line results. Order growth slowed considerably in late 2018, but homebuilders have managed to climb 8% this year.
Existing home sales data was below expectations this week as sales slowed in December to the weakest rate since 2015. Single family markets are increasingly sensitive to mortgage rates.