Displaying items by tag: housing

Tuesday, 20 November 2018 17:37

Why Real Estate Might Stop the Fed

(New York)

One of the surest signs in the economy right now is that real estate is in trouble. Data coming out of the sector has been consistently weak for months and shows a clear downtrend in the housing market. Rates seem to be playing a big part of that, as demand for housing has sunk as rates have risen. That could prove one of the few brakes on the Fed’s relentless rate hike path. The fall in real estate comes at a time when the market should be surging, as unemployment is at extreme lows and Millennials are entering their peak home buying years.


FINSUM: Besides stocks and bonds freaking out, real estate is one of the areas showing a lot of weakness, and this it is perhaps one of the few aspects that could stop the Fed.

Published in Eq: Real Estate

(Miami)

Luxury real estate is an interesting corner of the housing market for a number of reasons. It is not subject to the same sort of macro trends that affect the rest of the real estate market, such as mortgage rates directly influencing pricing and demand. Therefore, it is often overlooked as a barometer of the sector. However, if you pay attention, luxury real estate actually works as a solid leading indicator of the broader real estate market. While it is insulated, it is not immune from the same forces as its mass market brethren, and rates, stock prices, foreign buying and beyond all affect it. For instance, the chief economist at Redfin comments that “When people have more wealth because of stock gains, they have more money to spend on luxury homes … But if some luxury buyers think the stock market isn’t going to do as well, there may be an increase in investment in real estate because it’s seen as a safer place to put money”.


FINSUM: The problem with correlating the stock market and luxury housing is that both stocks rising and falling can boost luxury real estate, as rising shares mean more wealth to splash out on homes, while a weaker market can boost the sector because of safe haven characteristics.

Published in Eq: Real Estate
Wednesday, 07 November 2018 12:39

The Housing Market Looks Very Bearish

(Los Angeles)

More bad news is flowing out of the housing market. For the last several months, home sales, new builds, and demand has been falling. Prices are down in some major metropolitan areas. Now, new data shows that mortgage demand is contracting. US mortgage applications fell to their lowest level since 2014 in recent weeks. This comes on the back of mortgage rates rising to their highest since 2010.


FINSUM: There have been eight rate hikes since 2018 and home prices are at lofty levels. A downturn should come as no surprise.

Published in Eq: Real Estate
Tuesday, 06 November 2018 09:58

2 Great Housing Stocks

(New York)

Housing stocks are in a real slump right now. Many homebuilders are in a full bear market following months of slowing home sales and new construction. For instance, the iShares U.S. Home Construction ETF is down 26% this year. That said, take a look at two stocks that seem like they have strong upside—Ingersoll-Rand (IR) and Lennox International (LII). Both companies are in the HVAC sector of housing, which is a strong niche.


FINSUM: What is so strong about the air conditioning and heating (HVAC) sector is that it is at the start of a big replacement cycle. These machines typically last 12 to 15 years, so there is an ongoing boom in replacement of the huge amounts of these systems installed in the 2003 to 2006 housing surge.

Published in Eq: Real Estate
Tuesday, 23 October 2018 09:24

The Housing Market is Showing Warning Signs

(New York)

Everyone know the housing market is facing some headwinds. Strong home price growth combined with higher rates is hurting demand. Accordingly, sales and new activity have been falling since the late spring. However, new data shows that home prices seem to have already entered a cyclical downturn that is only going to intensify. A combination of low affordability, slowing demand, and higher rates have conspired to bring down home prices, and it does not look like things will turn around quickly. The Fed is already warning about real estate being a “downside risk” for the economy.


FINSUM: The whole housing market seems to be slowly, but surely, stalling. Homebuilder stocks have been hammered, prices are falling, and rates are rising. It seems like we are in for a downturn.

Published in Eq: Real Estate
Page 4 of 7

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…