Thu 7 Sep 2006
Open the door, there is no floor! Why are REITs still doing well?
Posted by John under Commentary , Research[2] Comments
I just found this great bit of data on The Big Picture Real Estate blog, an enjoyable read. I’ll present it here as they did, since it’s just startling (these figures cited below are just out in Sept), and REITs are still chugging upward like little engines that could.
Housing by the numbers
| Housing Stat | Year Over Year Change |
| Builders? sentiment | -52.2% |
| New-home sales | -21.6% |
| Purchase-mortgage applications | -20.9% |
| Building permits | -20.8% |
| Housing starts | -13.3% |
| Existing-home sales | -11.2% |
| Existing-home inventories | +39.9% |
| New-home inventories | +22.4% |
September 8th, 2006 at 11:34 am
Perhaps it has to do with a difference in commercial vs. residential real estate. I’m not certain but aren’t most REITs in the commercial realm? Is the commercial sector next on the hit list?
September 12th, 2006 at 8:13 am
I think I’m figuring this out a bit more–these numbers don’t reflect REITs as a whole as much as they reflect the health of the construction industry (a component of REITs, for sure). I’m compiling a list of stocks and their individual performance and value within each of the REIT sectors. I hope to post this information as an attachment soon.