IYR

Rates Down, REITs Up

Two years of persistent rate-driven pressure on the residential and commercial real estate market appears to be abating. The worst of pandemic-era inflationary pressures appear to be subsiding. State of the reit nation analyzes the recently-released nareit t-tracker data.

New And Revised Data Suggests Possible Negative Change In Trend For U.S. New Home Market Cap

New home market cap of new homes sold during october 2023 is $29.25 billion. Downward revisions for new home sales in recent months combined with falling average price have changed the trend for the market cap. The data is the first to break a series of rising monthly values for the new home market since november 2022.

Listed Real Estate: Searching For Positive Signals While Reviewing The Case For REITs

Reit index performance can be a leading indicator for the asset class as a whole. Global commercial real estate valuations have been falling since the beginning of the year. Asset allocation recorded a strong quarter for listed real estate. Reits send encouraging signals. A deeper analysis of sectoral returns since the great financial crisis shows no clear pattern.

IYR: If The Economy Weakens, Real Estate Could Feel Another Pinch

Ishares u.s. Real estate etf (iyr) is a passive sector fund that invests in the real estate sector. The fund has seen a boost in recent months due to a decline in treasury yields. I remain lukewarm on the fund and the broader real estate sector. I am concerned those gains will cool in the year ahead if economic growth slows.

Home Prices See Big Bounce Off 2023 Lows

Latest case shiller home price data for september showed a 0.3% month-over-month increase in home prices at the national level. Fifteen of twenty cities saw prices rise m/m, with detroit, new york, and las vegas jumping the most. Home prices have jumped significantly from their lows at the start of 2023.

The State Of REITs: November 2023 Edition

Reits averaged a -5.31% total return in october and have now fallen to a double-digit negative total return year to date. Data centers were the only reit property type to average a positive total return. Self-storage (-10.27%) and multifamily (-9.52%) underperformed all other property types. In october 26.80% of reit securities had a positive return with only 5.6% in the black.

Opportunities In Private Credit: Stepping In As Banks Step Out

Banks are retrenching amid liquidity constraints, regulatory scrutiny, and higher cost structures. As banks pull back, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the gfc. We expect increasing opportunities are likely in specialty finance, senior corporate loans, and commercial real estate.

Homeownership Slips Out Of Reach For Many U.S. Buyers In The West And East Coast Regions

Homes in 29 states are unaffordable to the median household, marking the first time a majority of states have below-average affordability. In these 29 states, the median household cannot afford a median-priced home. Western and northeast states are among the most unaffordable, while the great plains and upper midwest remain the most affordable.