On the heels of a wild week that saw steep intra-day market moves, US equity markets finished the day lower by more than 1% as geopolitical tensions continue to mount - today in the form of Argentina, which saw it's stock market crash 35% following the surprise results of a snap election. The S&P 500 and Nasdaq each finished lower by 1.2% as the 10-Year yield dipped another 9 basis points to close the day at 1.64%. Meanwhile, domestic-focused and more rate-senstive equity sectors outperformed with the Hoya Capital US REIT Index finishing the day lower by a modest 0.3%. The manufactured housing, storage, and apartment REIT sectors led the gains on the day.

The Hoya Capital US Housing Index finished the day lower by 0.8% with all eight housing sectors finishing in negative territory on the day. The Residential REIT and Home Furnishings sectors were the relative outperfomers on the day. Beacon Roofing (BECN), Restoration Hardware (RH), Realogy Holdings (RLGY), Essex Properties (ESS), and Williams-Sonoma (WSM) were all up by at least 1.7% on the day.

The economic calendar again heats up this week with Core CPI data on Tuesday, Retail Sales and Homebuilding Sentiment on Thursday, and the closely-watched Housing Starts and Permits data on Friday. Based on strong order growth results from the publicly-traded homebuilders and other forward-looking indicators noted above, we expect to begin to see the positive effects of lower rates show up in the more slower-reacting housing starts and home sales data over the next several months.

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, Timber, and Real Estate Crowdfunding.

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