Real Estate Daily Recap: REITs & Homebuilders Dip Following Disappointing New Home Sales Data
For the second straight day, the Hoya Capital US REIT Index finished the day lower by 1.1%, trending lower following weaker-than-expected economic data this morning, including a miss on New Home Sales. All REIT sectors were lower on the day with the data center, cell tower, and net lease REITs underperforming on the day. The S&P 500 finished down by more than 1% while the Nasdaq finished off by 1.7%. The 10-Year yield retreated another 3 basis points on the day, falling to the lowest level since late 2016.
The Hoya Capital US Housing Index finished the day lower by 1.1%, led to the downside by the Homebuilding and Real Estate Technology & Brokerage sectors following weak home sales data this morning. Home Prices, however, rose by more than expected. The Mortgage Lending & Services and Homebuilding Products sectors were the relative outperfomers on the day led by Realogy, Williams-Sonoma, Bed Bath & Beyond, and Trex.
New Home Sales data released this morning was weaker than expected with the TTM rate of growth turning negative for the first time since 2011. From CNBC: "Sales of newly built homes fell 7.8% in May from April and were 3.7% lower than in May 2018, according to the U.S. Census. The median price of a newly built home sold in May was $308,000, down 2.7% annually."
For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, and Real Estate Crowdfunding.
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