The Rotation Into Real Estate Continued In August
US equity markets snapped their four-week losing streak as economic data and retail earnings indicated that the US consumer remains resilient despite the growing drumbeat of recession calls.
Investors and consumers remain on edge, however, as trade tensions are likely to persist into 2020. Funds continue to flow into the domestic-focused, defensively-oriented sectors, including real estate and utilities.
REITs and Utilities, each climbing roughly 4% in August, were the lone US equity sectors in positive territory this past month as the S&P 500 finished lower by 2%.
While home sales trends have turned positive this year, individual data points remain choppy. Pending home sales missed estimates this month as lack of supply continues to restrain potential growth.
Incomes are finally outpacing home price appreciation, welcome news for the millions of millennials set to enter the housing markets in full force during the 2020s.