Alex Pettee, CFA
Real Estate Daily Recap: REITs Extend Rally, Homebuilders Climb Despite Lukewarm Existing Home Sales
Following a 1.3% yesterday, the Hoya Capital US REIT Index finished the day higher by 1.0%, led by gains in the industrial, mall, and hotel REIT sectors. The storage, office, and cell tower REIT sectors were the relative underperforms on the day, but all fourteen sectors finished in positive territory. The S&P 500 climbed climbed by 0.9% and the Nasdaq climbed 1.0%%. At 2.43%, the 10-Year yield finished the day higher by 1 basis point, bouncing back from the lowest weekly closing level in nearly 18-months.
The Hoya Capital US Housing Index finished the day higher by 1.2% with all eight sectors finishing in positive territory. The Homebuilding Products and Real Estate Technology & Brokerage were the relative outperforms. Overstock, Restoration Hardware, Trex, Realogy, AO Smith, Zillow, and Redfin each climbed at least 3% on the day.
The Real Estate Technology and Mortgage Lending & Services sectors were the relative laggards on the day. At Home, Fidelity National, Travelers, Walmart, and Wayfair were the relative laggards.
Existing Home Sales data today come in below estimates, dipping 0.4% on a month-over-month basis and 4.4% on a year-over-year basis. Inventory remains near historically low levels at 4.2 months supply.
New Home Sales data is released on Thursday with Durable Goods data released on Friday.
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