Winter Is Coming, But The Housing Market Is Thawing: 3 Indicators Suggest 2024 Momentum Is Building
Portfolio Pulse from Surbhi Jain
The housing market is showing signs of recovery as 2023 ends, with falling mortgage rates, increased new listings, and more consultations with Redfin agents indicating momentum for 2024. Real estate tracking ETFs like VNQ, SCHH, XLRE, and IYR have risen 17%-20% since November 1. Mortgage rates have dropped to 6.64%, and new listings are up 9% YoY, suggesting a potential upswing in real estate activity despite a current year-over-year decline in pending home sales.
December 21, 2023 | 7:27 pm
News sentiment analysis
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POSITIVE IMPACT
iShares US Real Estate ETF (IYR) has risen 17%-20% since the beginning of November, correlating with the housing market's positive signs.
IYR's performance is linked to the real estate sector, which is currently experiencing a rebound. The ETF's gains are supported by the latest market indicators and may continue if the trend persists.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Charles Schwab U.S. REIT ETF (SCHH) has increased by 17%-20% since early November, buoyed by the improving housing market conditions.
SCHH's performance is closely tied to the real estate market, which is showing signs of recovery. The ETF's recent gains are expected to persist if the positive market trends continue.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Vanguard Real Estate ETF (VNQ) has seen a 17%-20% increase since November 1, 2023, due to positive indicators in the housing market.
VNQ's recent rise is directly related to the positive developments in the housing market, such as falling mortgage rates and increased new listings, which are likely to continue supporting its performance in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Real Estate Select Sector SPDR ETF (XLRE) has appreciated 17%-20% since November 1, in line with the positive momentum in the housing market.
XLRE's recent performance is reflective of the broader real estate market's improvement. The ETF is likely to benefit from the continued positive indicators such as lower mortgage rates and increased buyer activity.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80