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  • Alex Pettee, CFA

Real Estate Daily Recap: REITs Start Week With 1% Gains, Homebuilders Dip on Soft Sentiment Data

Following a 0.8% gain last week, the Hoya Capital US REIT Index started the week on a high-note, climbing nearly 1% following weaker-than-expected economic data this morning. Empire State Manufacturing Data and Homebuilder Sentiment data were both weaker-than-expected, sending the 10-Year yield lower by another 1 basis point, again flirting with the lowest level in 21 months. The S&P 500 finished higher by 0.1% while the Nasdaq climbed 0.6%.

The Hoya Capital US Housing Index finished the day flat with all four of the eight housing sectors in positive territory. The Residential REIT and Real Estate Technology & Brokerage sectors were the outperformers on the day. Realogy, Overstock, Ventas, Tempur Sealy, and Redfin each climbed at least 1.8% on the day.

Homebuilder sentiment data today kicked off a busy two weeks of housing data. Housing permits and starts data is released on Tuesday. Both housing construction metrics have been soft since mid-2018 and has yet to show signs of upward inflection from improving housing market conditions, but we expect upward surprises over the next few months based on forward-looking metrics. On Wednesday, the Federal Reserve is expected to announce to keep rates steady at 2.5%, but signal that one or more cuts could be expected through the end of 2019 if economic data continues to soften. Wrapping up the busy week, existing home sales data is released on Friday.

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, and Real Estate Crowdfunding.

Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.

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Hoya Capital Research & Index Innovations is an affiliated index provider and research firm that builds custom indexes tracking U.S. commercial and residential real estate sectors, including indexes tracked by exchange-traded funds (ETFs). 

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