Weekly Outlook: Home Sweet Home
Updated: Sep 30
U.S. equity markets staged a late-week rally to end a turbulent week with gains as concerns over instability in Chinese markets were offset by signs of resilient strength across US housing markets.
Snapping a skid in which the benchmark average declined in 10-of-12 trading sessions, the S&P 500 rode a three-day rally to weekly gains of 0.6% while Mid-Caps and Small-Caps gained 0.9%.
Real estate equities were mixed on the week as strength from reopening-sensitive property sectors and housing REITs were offset by weakness from large-cap technology and industrial REITs.
Home, Sweet Home was the theme amid a "perfect week" of housing data with Housing Starts, Building Permits, Existing Home Sales, New Home Sales, and Homebuilder Sentiment all topping expectations.
AvalonBay rallied after the coastal apartment REIT raised its outlook and reported a continued surge in rent growth. Riding the housing market strength, timber REIT Weyerhaeuser rallied after declaring a significant supplemental dividend.
Disclosure: Hoya Capital Real Estate advises two Exchange-Traded Funds listed on the NYSE. In addition to any long positions listed below, Hoya Capital is long all components in the Hoya Capital Housing 100 Index and in the Hoya Capital High Dividend Yield Index. Index definitions and a complete list of holdings are available on our website.
Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.