Solid Start To Earnings Season For Real Estate

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• Amid a volatile backdrop of political and trade uncertainty, US markets have seemingly calmed over the last several weeks. The S&P 500 barely missed notching a fifth consecutive positive week
• The longest US government shutdown in history came to a temporary halt on Friday as the negotiations continue. The S&P 500 rose more than 10% during the 35-day shutdown.
• REIT earnings season got off to a solid start this week. Industrial REIT Prologis hasn’t seen “any softness” in demand for their distribution centers. REITs rallied for the third week.
• The second and third largest homebuilders, D.R. Horton and NVR, both reported in line results. Order growth slowed considerably in late 2018, but homebuilders have managed to climb 8% this year.
• Existing home sales data was below expectations this week as sales slowed in December to the weakest rate since 2015. Single family markets are increasingly sensitive to mortgage rates.