Real Estate Weekly Review: Worst Week For REITs Of 2019, But Housing Outlook Strengthens
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- 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.
