Real Estate Daily Recap: REITs Finish Lower By 1%, Housing Finishes Flat As Earnings Continue
Following a 1% gain last week, the Hoya Capital US REIT Index finished the day lower by 1.1% with all REIT sectors finishing in negative territory on the day as interest rates again crept higher following some relief last week. At 2.54%, the 10-Year yield finished the day higher by 3 basis points, pressuring the more yield-sensitive sub-sectors of the real estate market. The S&P 500 finished the day at new record highs, climbing 0.1%. The Nasdaq finished higher by 0.2%. Crude oil finished higher by more than 1% as the recent climb higher in energy prices threaten to derail the 'Goldilocks' economic conditions that had powered real estate outperformance since late 2018.
The Hoya Capital US Housing Index finished the day lower by 0.2% with five of the eight sectors in positive territory. The Home Furnishings and Real Estate Technology & Brokerage sectors were the strongest performing segments. Wayfair (W), Mohawk (MHK), Simpson (SSD), Owens Corning (OC), and Masco (MAS) each finished higher by 2% or more.
The Residential REIT and Home Improvement Retail sectors were the relative underperforms on the day. Fidelity National (FNF), Weyerhaeuser (WY), Tri Pointe (TPH), First American Financial (FAF), and PotlatchDeltic (PCH) each finished lower by at least 2%.
It'll be another jam-packed week for real estate earnings. Per Seeking Alpha, the slate tomorrow includes over a dozen REIT and housing company reports.
It'll be another busy week for housing and economic data. Core PCE data released this morning came in cooler than estimates, rising just 1.6% on a year-over-year basis. Case-Shiller Home Prices and Pending Home Sales on Tuesday, ADP jobs data and Construction Spending on Wednesday, and the monthly non-farm payrolls report on Friday.
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