Real Estate Weekly Review: Worst Week For REITs Of 2019, But Housing Outlook Strengthens
After climbing for a remarkable thirteen out of the past fourteen weeks, REITs stumbled this week, dipping nearly 3% despite an otherwise solid start to earnings season.
Economic growth expectations and interest rates in the US and abroad have marched higher over the past month, threatening to upset the 'Goldilocks' economic conditions that powered REITs.
Homebuilders rallied this week as the single-family housing market outlook continues to strengthen following a dismal 2018. Homebuilder sentiment climbed to six-month highs.
Accelerating forward-looking housing market metrics, however, have not yet translated into starts and permitting data. Housing starts declined over the past twelve months for the first time in eight years.
Retail sales data beat estimates in March, but the acceleration of 2018 continues to fade, along with optimism across many of the at-risk brick and mortar retail categories.
