The Real Estate Select Sector SPDR Fund (XLRE)
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- Yahoo Finance
The real estate sector’s unique view of 2024 — and what’s to come
The S&P 500 is still up on the year — but the real estate sector is lagging far behind the broader index. The differences between sector and market don't stop there: the two have broadly different ideas of what the Fed will do.
- Yahoo Finance Video
How real estate investors should play higher interest rates
The real estate sector (XLRE) has been underperforming as uncertainty surrounding potential Federal Reserve interest rate cuts weighs heavily on the industry. To provide insight into the current state of the US housing market, Fundrise CEO and Co-Founder Ben Miller and CenterSquare Senior Investment Strategist Uma Moriarity join Market Domination. Moriarity notes that shelter inflation is a significant component of the continued high inflation data, acknowledging that it is a "lagging indicator." However, she points out that "real-time shelter costs" are lower than what is being reported in inflation prints, suggesting that the fight against inflation is "trending in the right direction." With rate cuts still on the table, Moriarity believes the current high-rate environment is "providing a really good opportunity for investors today" in terms of real estate and homebuilder stocks. Echoing Moriarity's sentiment, Miller highlights that "real estate moves inversely with interest rates." While rates have peaked, he believes "there's much more room for the rates to come down." As rates decline, Miller anticipates it will provide a "huge tailwind for real estate." Additionally, he notes that the real estate sector is beginning to see a normalization, expressing optimism that the sector has "hit the bottom," which could present a favorable buying opportunity for investors. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith
- Yahoo Finance Video
Office vacancies soar to record high: Expert
Office vacancies are rising across America. Moody's Head of Commercial Real Estate Economics Thomas LaSalvia joins Yahoo Finance Live to discuss this trend. LaSalvia states that office vacancies are currently at "a record high," on their way "to peak above 20%" and possibly remain there for years. He attributes this development to office spaces not having enough income to "be able to kick the can" until interest rates lower and refinancing can occur. However, LaSalvia notes that not all properties are in "rough shape." He explains that areas such as Nashville, Tampa, and Kansas City are seeing more offices relocate there. As talent migrates to "more affordable locations," there has been a dispersion of where offices "want to or need to locate" in order to attract this talent. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
